Question

What do individual shareholders gain when they buy shares of a company’s stock?

A. They gain partial ownership in the corporation.
B. They gain the power to fix company stock prices.
C. They gain the right to decide the business location.
D. They gain discounts on the company’s products.

Answer 1

A. They gain partial ownership in the corporation.

Answer 2

Letter A. They gain partial ownership in the corporation.

Step-by-step explanation:

Shares of a company represent a part of the capital of the company. Thus, by acquiring shares the shareholder is acquiring a fraction of the corporation, becoming a partner. In this sense, when they acquire partial ownership of the company through the shares, they are compensated with dividends, that is, the company's profits that are shared with the shareholders.