Shares of stock do not come with a guarantee for a minimum rate of return, nor can they typically be redeemed by the owner for other company assets or for the purchase price. The value of a share is determined by the market, and its return depends on the performance of the company and market conditions.

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A Share of Stock

Question 189

Multiple Choice

A share of stock:

A) may be redeemed by the owner for other company assets
B) must be guaranteed a minimum rate of return by the issuer
C) may be redeemed for purchase price
D) all of the other specific choices
E) none of the other choices

Correct Answer: