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10 April, 22:27

Which of the following is a characteristic of stock?

a. Stock represents a promise to repay a fixed amount of funds.

b. The face value or principal plus interest is repaid at a specified period of time.

c. The length of coupon payments is fixed by the stated maturity period.

d. Stock represents ownership in a firm

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  1. 10 April, 22:30
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    Answer: d. Stock represents ownership in a firm

    Explanation: Stock represents ownership in a firm. It is the capital raised by a company through the issuance of shares--a financial instrument that shows that an individual owns a part of a company that provides the benefit of limited liability (the liability of an owner or a partner of a company fr no more capital than the have invested). A stock is also known as equity and is a security that represents the ownership of a fraction of a firm.
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Home » Business » Which of the following is a characteristic of stock? a. Stock represents a promise to repay a fixed amount of funds. b. The face value or principal plus interest is repaid at a specified period of time. c.
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