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Sammy wants to invest in Google but does not know if he wants to invest in...

Sammy wants to invest in Google but does not know if he wants to invest in stocks or bonds. Which of the following statements is true? A. Buying stocks is a way of lending money to the company . B. Buying bonds is buying an ownership share of the company . C. Buying stock is buying an ownership share of the company . Only institutional investors are allowed to invest in corporations

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Answer #1

correct answer is option = C. Buying stock is buying an ownership share of the company

Explanation = common stock give right to the holder as owner of the company. Ownership % will be based on the number of share holder dividend total number of share outstanding. Bond is the debt or its like giving loan to the company. There is no such restriction that only institutional investor are allowed to invest. Any one can invest in the corportaion.

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