If you purchase a part ownership stake in a firm, you are said to be:

Question

Quizplus · Accepted Answer

Purchasing a part ownership stake in a firm means that you are buying shares of the company which makes you a shareholder. A shareholder is someone who owns a portion of a company and has a claim on its assets and earnings. Thus, option D is the correct answer. Option A is incorrect as preferred shares are a type of stock with a higher claim to earnings and assets over common shares. Option B is not a valid term. Option C is incorrect as bondholders are creditors of a company who have lent money to the firm and receive interest payments in return.

If You Purchase a Part Ownership Stake in a Firm