Jeff Goldblum has just purchased a security which has no maturity date and no promised payments. He can recoup his investment by either selling the security to another individual or to the issuer, if the issuer ever makes an offer to buy it. What type of security did Jeff purchase?

Question

Quizplus · Accepted Answer

Jeff purchased common stock, which does not have a maturity date and does not promise payments. The value of the stock will fluctuate based on market conditions and the performance of the company. Jeff can recoup his investment by selling the stock to another individual or back to the company if the company decides to repurchase its own shares.

Jeff Goldblum Has Just Purchased a Security Which Has No