Financial assets that represent the partial ownership of a firm and an ability to share in its profits are called:
A) equities.
B) debt certificates.
C) intermediaries.
D) Treasury securities.

Question

Quizplus · Accepted Answer

Equities represent ownership in a company, which can lead to a share in its profits through dividends or capital gains. Debt certificates, such as bonds, represent a loan to a company and do not provide ownership or profit-sharing opportunities. Intermediaries refer to entities such as banks or investment firms that facilitate transactions between buyers and sellers of financial assets. Treasury securities are debt instruments issued by the government and do not represent ownership in a company.

Financial Assets That Represent the Partial Ownership of a Firm