Understanding Stock Investments

What does owning a stock in a company entitle you to?

• Products produced by the company

• Management position in the company

• Employment within the company

• Rights to company's assets and earnings

Why did Steve choose to issue stocks instead of borrowing from a bank?

• To increase the company's debt

• To reduce his ownership in the company

• To quickly dissolve the company

• To avoid interest payments

What percentage of P R Us did each investor own after investing $10,000,000?

• 10%

• 5%

• 20%

• 15%

What was the value of each share after the company's value increased to $200,000?

• $10,000

• $20,000

• $15,000

• $25,000

By what percentage did the value of the stocks increase after one year?

• 200%

• 150%

• 50%

• 100%

Where are stocks typically bought and sold?

• On major exchanges

• At the company headquarters

• In private transactions

• On government platforms