Which of the following best describes a stock?a) A loan to a company that pays regular interest b) A type of savings account with a fixed interest rate c) A share of ownership in a corporation d) A contract to buy or sell an asset at a future date*
Question
Which of the following best describes a stock?a) A loan to a company that pays regular interest b) A type of savings account with a fixed interest rate c) A share of ownership in a corporation d) A contract to buy or sell an asset at a future date*
Solution
The answer is c) A share of ownership in a corporation. When you buy a stock, you're buying a piece of the company, making you a partial owner. The other options do not accurately describe what a stock is.
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