Question & Answer: An investment in equity securities means the investor is a/an _________ with respect to the company and has an exp…..

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An investment in equity securities means the investor is a/an _________ with respect to the company and has an expectation of ________ from the investment. creditor/interest owner/interest creditor/dividends owner/dividends

Expert Answer

 

Common stockholders are the real owners of the company. They are also called residual owners. They are entitled for dividends only after paying interest and preference dividends.

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Hence, correct option is owner/dividends.

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