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Which of the following statements is true about stocks? a. Owners of stock securities are actual...

Which of the following statements is true about stocks?

a. Owners of stock securities are actual owners of the firm. b. Stocks have a maturity date. c. Owners of stock securities are guaranteed a return on their investments. d. Only institutional investors can own stock securities. e. Stocks represent a debt to be paid.

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Answer #1

Option (a) is correct

Owners of stock securities are actual owners of the firm.

Option (b) is incorrect as there is no maturity date of stock. Ownership can be transferred by selling the stocks.

Option (c) is incorrect as owners of stock securities are not guarateed a return on their investment. They are paid in the form of dividend, which is at the discretion of the board.

Option (d) is incorrect as any person, not only institutional investors, can own the stock securities.

Option (e) is incorrect as stock is not debt rather it represents ownership.

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