Question

Which best explains what it means for a company to sell its stock?

Investors are lending the company money which the company must pay back later with interest.

Investors are buying a share of the loans the company has taken from banks. As the loans are repaid, the investor will profit.

Companies are trading shares of ownership with a business competitor, so that both businesses cannot have too great a loss.

Companies are selling shares of ownership and a share of its profits in exchange for money it can use to operate their business.

Answer 1

D i think

Answer 2

It would be D, since it would only give back money when they get profit. If they don't have profit, the investor receives nothing, constituting a loss.

Answer 3

So i was right then.

Answer 4

Yup

Answer 5

thank you guys!

Answer 6

You're welcome :)