A stock has which of the following characteristics?

Answer:

It represents a claim on a company's assets and earnings.

explaination:

A stock is a type of financial asset that signifies ownership in a corporation. When an individual purchases a stock, they become a shareholder, which entitles them to a portion of the company's assets and earnings. This ownership means that shareholders can benefit from the company's profits, typically through dividends or capital appreciation. Unlike fixed interest financial assets, stocks do not guarantee returns and their value can fluctuate based on the company's performance and market conditions. Therefore, the characteristic that best describes a stock is that it represents a claim on a company's assets and earnings.

Topic: Finance, Stocks and Investments

Tags: finance stocks investments equity

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A stock has which of the following characteristics?

Question:

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Answer:

explaination: