A form of investment that represents partial ownership in a company is called which?

• A. Stock
• B. Bond
• C. Mutual Fund
• D. Certificate of Deposit

Answer: (A)

Representing partial ownership in a company means you own a share of that company. Owning stock gives you equity—you own a portion proportional to your shares, and you can benefit from the company’s growth through potential price appreciation and dividends, plus possible voting rights in some cases. In contrast, a bond is a debt instrument: you’re lending money to the issuer and earning interest, not owning part of the company. A mutual fund pools investors’ money to buy a diversified portfolio, so you own shares of the fund rather than direct shares of a single company. A certificate of deposit is a bank time deposit that pays interest and returns your principal later, with no ownership stake. So the investment that represents partial ownership is stock.