When a Person Buys Stock in a Company, That Person

question 284

Multiple Choice

When a person buys stock in a company, that person is buying ________, but when a person buys a bond in a company, that person is ________ the company.

• A) ownership; borrowing funds from
• B) ownership; lending funds to
• C) debt; lending funds to
• D) debt; borrowing funds from

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Definitions:

Pseudoscience

A collection of beliefs or practices mistakenly regarded as being based on scientific method, lacking empirical support and reproducibility.

Critical Thinker

An individual who actively engages in analysis, synthesis, and evaluation of information gathered from observation, experience, or communication.

Common Sense

Practical judgment concerning everyday matters, or a basic ability to perceive, understand, and judge in a manner that is shared by (common to) nearly all people.

Oversimplification

The reduction of a complex issue or idea to simplistic terms, often ignoring nuances and complexities.