The security that represents equity or ownership of a corporation is

Question

Quizplus · Accepted Answer

Common stock represents ownership in a corporation and provides the holder with equity, which is a form of security. Holders of common stock have voting rights and are entitled to share in the profits of the corporation through dividends. Corporate bonds represent debt and provide fixed income, while long-term loans and stock options are not forms of equity or ownership.

The Security That Represents Equity or Ownership of a Corporation