Shares of stock represent partial ownership of a firm, which grants the shareholder the right to vote on important company matters and receive a portion of the profits if they are issued as dividends. They do not represent a promise to repay a debt or make regular payments to the shareholder, nor are they repaid at maturity.

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Shares of Stock Are

Question 215

Multiple Choice

Shares of stock are

A) legal promises to repay a debt.
B) claims to partial ownership of a firm.
C) regular payments made to owners of a firm.
D) repaid in full at maturity.
E) legal promises to make regular payments to the stockholder.

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