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CNBC Quizzes

Quiz: Think You Understand Markets? Prove It

Question 1 of 14

If you buy a company's stockā€¦

  1. You own a part of the company
  2. You have lent money to the company
  3. You are liable for the company's debts
  4. The company will return your original investment to you with interest
  5. Don't know/Not sure
Correct!

Stocks are known as "equities" because each stock share represents a small percentage of ownership in the company, entitling the shareholder to vote in the election of directors and on other matters taken up at shareholder meetings or by proxy.