Which item is an advantage of stock? I. reduction of risk for the owners of the company
II) increased welfare for investors who buy the stocks

Question

Quizplus · Accepted Answer

Stock ownership allows for investors to potentially earn returns on the company's profits and success, which provides an increased welfare for investors (II). Additionally, by spreading ownership among many investors, the risk is reduced for the owners of the company (I). Therefore, both I and II are advantages of owning stock.

Which Item Is an Advantage of Stock? I