An investor purchases the right to receive a specified fixed

An investor purchases the right to receive a specified fixed stream of income from the corporation when he purchases a share of stock.

true or false

Solution

\"False\"

A share of stock doesn\'t ensure a specified fixed stream of income form the corporation. Shares are just a part of profit which tends to increase or decrease with the market condition. IF market conditions are favorable the return will be higher and if profit is lower the return will be lower. It\'s not a fixed stream of income.