Stocks

When investors buy shares of stock in a company, the company uses that money to

• make and sell its product

• fund its operation

• expand the business

• All of the mentioned

........................ is a company that issues stock to a small group of people. A private corporation’s stocks are not traded openly in stock markets.

• A private corporation

• Public corporation:

• Hybrid Corporation

• All of the above

........................ is one that sells it its shares openly in the stock market, where anyone can buy them.

• A private corporation

• Public corporation:

• Hybrid Corporation

• All of the above

Dividends is Mandatory when it comes to common stock

• True

• False

The corporation does not have to repay the money common stockholder pays for stocks,

• True

• False

The corporate board of directors decides whether any profit will be paid to stockholders as dividends or not.

• True

• False

The corporate board of directors sometimes decides to pay dividends to keep customers happy.

• True

• False

Why do investors purchase common stock?