What are stocks? Loans people make to a government and expect to be repaid A pool of money from investors that is invested in many ways Retirement savings accounts that are tax deferred Shares of ownership in a company that may pay dividends

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25 July, 03:31

What are stocks? Loans people make to a government and expect to be repaid A pool of money from investors that is invested in many ways Retirement savings accounts that are tax deferred Shares of ownership in a company that may pay dividends

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Tiffany Duffy · Answer 1

The correct answer to the following question is the last option - the shares of ownership in a company that may pay dividends.

Explanation:

Stocks which are also popularly know as shares or equity, can be defined as one of the types of securities which signifies the proportion of ownership in the issuing company. If a person (who is know as the shareholder or stockholder) holds a company's shares, then that person is entitled to the proportion of company's assets and earnings (the proportion would depend upon the number of shares he or she is holding). If a company earns profit, then that shareholder would receive some portion of that earning in form of dividends.