What is a share of ownership in a corporation called?

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Enhance your EPF Standard Essentials Test preparation with comprehensive flashcards and multiple-choice questions. Access hints and explanations for each question to fully grasp the concepts. Prepare effectively to ensure success in your exam!

A share of ownership in a corporation is referred to as stock. When individuals buy shares of a company's stock, they are purchasing a piece of the company, which entitles them to a portion of its assets and earnings. This ownership is conveyed through the issuance of stock certificates or electronic records, which represent the stakeholder's claim on the company's resources and profits.

Stock is a crucial component of what is known as equity, which describes the ownership value in an asset, such as a business, once all liabilities have been subtracted. However, in the context of the question specifically asking for a term that refers directly to a share within a corporation, 'stock' is the most accurate term.

While bonds represent a form of debt and real estate refers to physical properties, they do not embody ownership in a corporation itself. Therefore, stock is the definitive answer when discussing shares of ownership in the context of corporations.

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