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Questions and Answers
What is a stock?
What is a stock?
- A piece of paper that represents ownership in a corporation (correct)
- A type of bond
- A type of currency
- A type of livestock
What do shareholders do when they buy shares of stock in a corporation?
What do shareholders do when they buy shares of stock in a corporation?
- They become employees of the corporation
- They become part owners of the corporation and share in its success (correct)
- They become customers of the corporation
- They become competitors of the corporation
What happens to the price of a stock if the corporation does well?
What happens to the price of a stock if the corporation does well?
- It will become worthless
- It will stay the same
- It will probably go down in price
- It will probably go up in price (correct)
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