A share of stock is a
A) promise to pay specified sums of money on specified dates.
B) certificate of ownership and claim to the profits made by a firm.
C) collection of funds that travels the world looking for the highest return.
D) set of demanders and suppliers for the savings of households.
E) form of investment in physical capital.

Question

Quizplus · Accepted Answer

A share of stock represents ownership in a company and entitles the shareholder to a portion of the company's profits. It is not a promise to pay specified sums of money, a collection of funds, or a set of demanders and suppliers for the savings of households. It is also not a form of investment in physical capital.

A Share of Stock Is a