D. STOCK is the device that imparts ownership in a corporation.
It is a type of security that the corporation issues to raise money for capital or operating expenses. Stocks, issued to investors, signify ownership in a corporation and represent a claim on part of the corporation's assets and earnings.
There are two main types of stock. These are common stock and preferred stock.
Common Stocks are shares entitling their holder to dividends that vary in amount and may even be missed, depending on the fortunes of the company.
Preferred Stocks are shares that entitle the holders to fixed dividends, whose payments take priority over that of common-stock dividends.
