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.
E) a and b

Question

Quizplus · Accepted Answer

A share of stock represents ownership in a corporation and a claim on its assets. It does not necessarily entitle the shareholder to a share of the profits, although some stocks do pay dividends. Choices C and D refer to debt instruments, not stocks. Choice E is partly correct, but only option A is completely accurate.

A Share of Stock Is