You are referred to as an investor when you
A)Purchase shares of company
B)Issue shares of a company
C)Purchase bonds of a company
D)Issue bonds of a company
E)Both purchase shares and purchase bonds of a company

Question

Quizplus · Accepted Answer

Investors are individuals or entities that allocate capital with the expectation of receiving future financial returns. Purchasing shares of a company makes one a shareholder, and buying bonds of a company makes one a bondholder. Both actions involve investing money into a company with the expectation of earning a return, either through dividends, share price appreciation, or interest payments. Issuing shares or bonds, on the other hand, is an action taken by the company itself to raise capital.

You Are Referred to as an Investor When You