Question : ___________ is a financial instrument that represents ownership in a company.
Option 1: Share
Option 2: Bond
Option 3: Debenture
Option 4: Treasury bill
Correct Answer: Share
Solution : A share, also known as a stock, is a financial instrument that represents ownership in a company. When an individual or entity purchases shares of a company, they become shareholders or stockholders, which entitles them to a portion of the company's ownership and potential profits.
Shares are typically issued by public companies that are listed on stock exchanges, allowing investors to buy and sell them in the open market. The ownership of shares grants shareholders certain rights, such as voting rights in the company's decision-making processes, the right to receive dividends if the company distributes profits, and the right to participate in the company's growth and success.
