Answer:
offer shares of ownership that are traded on a stock exchange much like a corporation.
Explanation:
When we find ourselves in front of the companies that have their capital divided into shares or the shares of the Stock Market, one wonders, what are the shares? What are they for? Are they all the same? Next, we present a simple detail to keep in mind.
The share is defined as a piece of furniture or furniture that represents a proportional portion of the capital stock that makes up a corporation. Its holders are holders of the company, called Shareholders, in proportion to their participation, that is, in proportion to the total value of the sum of their shares in ownership.
Answer:
offer shares of ownership that are traded on a stock exchange much like a corporation.
Explanation:
Stock exchange is a market where securities such as stocks and bonds are traded. Stock exchange can be done in a physical location or an electronic trading platform.
Stocks refers to certificate of ownership. This means that an individual who trades stock with a firm will become a co-owner of the firm in other words a shareholder. A shareholder who is a co-owner of the firm is entitled to DIVIDEND, that is, a share of the firm's Profit.
Bonds on the other hand, are certificates that promise to pay a fixed rate of interest. It is a form of loan to a firm with the promise of repaying at the end of a specific period of time. A bond holder is entitled to INTEREST at a regular interval.
Stock exchange is used to
1) Raise capital.
2) Enhance economic efficiency.
3) Improves management efficiency.
