A share of stock is ownership in a corporation, which means the holder has a claim on the assets of the corporation and is entitled to a portion of the profits. The other options (B, C, and D) do not fully capture the essence of what a share of stock represents.

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A Share of Stock Is

Question 56

Multiple Choice

A share of stock is

A) a claim on the assets of the corporation that gives the purchaser an ownership right in the corporation.
B) the share of profits distributed to stockholders.
C) a promise to pay for the use of someone else's money.
D) a promise to loan money to someone.

Correct Answer: