People who buy newly issued stock in a corporation such as Crate and Barrel provide
A)debt finance and so become part owners of Crate and Barrel.
B)debt finance and so become creditors of Crate and Barrel.
C)equity finance and so become part owners of Crate and Barrel.
D)equity finance and so become creditors of Crate and Barrel.

Question

Quizplus · Accepted Answer

People who buy newly issued stock in a corporation provide equity finance, which means they become part owners of the company. This entitles them to ownership rights, such as voting on important company decisions and receiving a portion of any profits in the form of dividends.

People Who Buy Newly Issued Stock in a Corporation Such