A Security That Represents Direct Ownership Interest in a Corporation

question 58

Multiple Choice

A security that represents direct ownership interest in a corporation and allows the owner to share in the profits is known as which of the following?

• A) a mortgage bond
• B) common shares
• C) preferred shares
• D) a convertible bond

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Definitions:

Upper Quartile

The value below which 75% of the data points in a dataset fall, also known as the third quartile.

Percentile

A measure that indicates the value below which a given percentage of observations in a group of observations falls.

Five-number Summary

Consists of the minimum, first quartile, median, third quartile, and maximum, providing a quick overview of the distribution of a dataset.

Distribution

The way in which values in a dataset are spread out or distributed across a range of values or categories.