Which of the following statements about stocks is true ?

Choose Correct Answer of Which of the following statements about stocks is TRUE?

1. A stock is a share of ownership in a company.
2. A stock is a type of debt investment that acts like a loan
3. A stock is a type of investment that invests in a mix of different types of investments.
4. A stock is a type of savings account that pays
5. Interest based on current interest rates in the money market.

Answer of Which of the following statements about stocks is TRUE?

The option 1 is true regarding stocks as it represents some proportional ownership stake in a
firm. Stocks provides protection to the investment made in the firms especially in case bankruptcy is
declared by the organization.