Which of the following statements about stocks is TRUE?
A. A stock is a share of ownership in a company.
B. A stock is a type of debt investment that acts like a loan.
C. A stock is a type of investments that invests in a mix of different types of investments.
D. A stock is a type of savings account that pays interest based on current interest rates in the money market.
Which of the following statements about stocks is TRUE?
Share
The correct answer is A. A stock is a share of ownership in a company.
Explanation: When you buy a stock, you are essentially purchasing a small piece of the company, which gives you part ownership. This means that as the company grows and becomes more valuable, so does your investment in its stock. The other options incorrectly describe stocks as forms of debt, mixed investments, or savings accounts, which they are not.