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.

Hence, correct option is owner/dividends.

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