Question

A share of ownership in a corporation that represents a claim on a portion of that company's earnings is a ___?​

Answer 1

Answer:

The correct answer is Stock.

Explanation:

A stock is a document that states that a person is a partial owner of a company.

Let's see in a better way how stocks work:

When a company needs to generate income to be able to invest them and generate more profits, it may choose to sell stocks. This means that it gives people the possibility to buy a small part of their company, and so the person who has a stock will receive a percentage of all the assets and profits that company obtains.

If a person has many more stocks, he will have greater profit and will be a larger-scale owner than another who has only a few. While a person with an action is a partial owner, it does not mean that he can make decisions about that company.

This can be allowed to large shareholders who own a large part of the company.

You can currently buy stocks online in an easier way without the need for that paper-printed document that was used in the past.

The good thing about buying stocks is that you will not be responsible for the debts that the company has, but the bad thing is that if that company is doing badly, your actions will lose value.

Answer 2

Answer:

Stock

Explanation:

The value of a company is divided into small units called stocks. Therefore,  a stock represents partial ownership in a company. Individuals who own the stock of a company are known as the shareholders. The term stock, equity, or shares are used to mean the same thing.

The more stocks or shares an individual or an institution hold, the higher the percentage of ownership. As the company owners, shareholders are entitled to a stake in the company profits. Each shareholder earns dividends at the end of a financial year if the company is profitable.

Shareholders influence the management of the company by electing board members who, in turn, appoint the CEO.