Financial assets that represent the partial ownership of a firm and ability to share in its profits are called:
A) equities.
B) debt certificates.
C) intermediaries.
D) credit risks.

Question

Quizplus · Accepted Answer

Equities represent ownership in a firm and provide the opportunity to share in its profits through dividends and potential capital gains. Debt certificates, on the other hand, represent a loan from the investor to the firm and do not provide ownership rights or the ability to share in profits. Intermediaries are third-party institutions that facilitate transactions between buyers and sellers, and credit risks refer to the risk of default on a loan or other financial obligation.

Financial Assets That Represent the Partial Ownership of a Firm