Question

Stock represents_____.

a.a claim to the profits of a firm.
b.ownership in a firm.
c.equity finance.
d.All of the above are correct

Answer 1

d.All of the above are correct

Step-by-step explanation:

The stock describes the ownership of the stockholders in the company by their holding power.

It also represents the claiming power in the firm profit plus it is a method to raise the finance also. It has two types of i.e preferred stock and the equity stock which has their own advantage and disadvantage.

This stock is shown in the liabilities side of the balance sheet under the stockholder equity column.