Which of the following statements about shares of corporate stock is true?

Question

1-After a corporation sells shares of stock to the public, it raises additional money each time the shares change hands on a stock exchange.

2-A share of stock represents ownership of a portion of the company.

3-The corporation that issues the stock also sets the price of the stock.

4- A share of stock represents an IOU for a set amount of money at a specified future date.

" URGENT" I'm really confused between B and C.Can anyone one provide me with the correct answer,please?

I

Answer 1

4 is correct

Answer 2

2

Answer 3

it's 2. If you own 1 share of Acme, you own one little part of the company.  Let's say there is 100 shares of Acme (small numbers here for simplicity) and you buy one share, you own 1% of Acme.

The price is set at the stock exchange, from people buying and selling the stock itself.

A corporation doesn't make any additional money when it the share changes hands...... the stock broker does.....that pesky little commission fee.

A stock is a little bit of ownership in a company.

A bond is an IOU for a set amount of money (savings bond for example) or your investment in the bond, plus interest. Sort of like a Certificate of deposit, but a bond pays for something (for example, road bonds are sold to pay for a road or bridge up front, then they pay back the people who bought the bonds down the road)

I hope I helped! :)