Salma owns stocks of an e-commerce business. In exchange for the money she has invested, she has received two property rights from the business. Which of the following is most likely to be one of the property rights given to her?

Question

Quizplus · Accepted Answer

One of the property rights commonly given to stock investors is a share of the residual earnings of the business, also known as dividends. This means that Salma will receive a portion of the profits earned by the business, but not necessarily a higher percentage than other investors. B and C are unlikely property rights that Salma would receive from her investment. B, because stocks do not give ownership of business assets, and C because she would have no claim to the private properties of other investors.

Salma Owns Stocks of an E-Commerce Business