A Stock Is

question 134

Multiple Choice

A stock is

• A)a certificate of ownership and claim to the firm's profits.
• B)a promise to make specified payments on specified dates.
• C)a document which entitles its holder to the income from a package of mortgages.
• D)a financial market.
• E)available from a bank in the form of a loan.

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Definitions:

Collateral

An asset pledged by a borrower to secure a loan or other credit, and subject to seizure if the loan is not repaid according to the agreed terms.

Specific Assets

Assets identified and itemized separately for accounting, legal, or financial purposes.

Market Price

The prevailing market rate at which one can purchase or sell an asset or service.

Common Stock

Equity investments that represent ownership in a company and typically grant voting rights to shareholders.