A stock entitles you to:
A)charge interest to a corporation.
B)a fixed payment forever.
C)a percentage of a firm's total profits.
D)a coupon payment

Question

Quizplus · Accepted Answer

A stock entitles you to a percentage of a firm's total profits, usually paid out as dividends. Stocks represent ownership in a company, so as the company grows and becomes more profitable, the value of your stock can potentially increase. It does not entitle you to charge interest, a fixed payment forever, or a coupon payment.

A Stock Entitles You To