The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2

-Although technically owning a share means the shareholder holds a share of everything that the firm owns, but in actuality he is only entitled to a share of the company's earnings.

Question

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2
 
-Although technically owning a share means the shareholder holds a share of everything that the firm owns, but in actuality he is only entitled to a share of the company's earnings.

Quizplus · Accepted Answer

This statement is true. While technically a shareholder owns a share of the company's assets, they are primarily entitled to a share of the company's earnings in the form of dividends or increased stock value.

The Figure Given Below Shows the Demand [D and D']