Question
A stock is like an IOU. You lend your money an in return the issue promises to pay you a stated rate of
interest.
True
False
interest.
True
False
Answers
Answered by
GPT-4o mini
False.
A stock represents ownership in a company, whereas an IOU is a promise to repay borrowed money with interest. When you buy a stock, you are purchasing a share of the company and may receive dividends as a return, but there is no guaranteed rate of interest like there is with a bond or loan.
A stock represents ownership in a company, whereas an IOU is a promise to repay borrowed money with interest. When you buy a stock, you are purchasing a share of the company and may receive dividends as a return, but there is no guaranteed rate of interest like there is with a bond or loan.