What term describes a share of the ownership in a company?

The correct answer is "Stock" because it refers to a share of ownership in a company. When an individual buys stock, they are acquiring a piece of the company, which entitles them to a claim on part of the company’s assets and earnings. Stock can represent equity holdings in a corporation, and it comes in two primary forms: common stock and preferred stock.

Common stock typically allows shareholders to vote on company matters and receive dividends, while preferred stock generally prioritizes dividend payments without voting rights. This concept is central to investment and finance since owning stock provides individuals with the potential for capital appreciation and income through dividends.

In contrast, a certificate might refer to a document that represents ownership but does not specifically denote ownership in a company like stock does. A bond is a loan made by an investor to a borrower, typically a corporation or government, which does not denote ownership in the company. A dividend is a payment made to shareholders from a company’s profits and is not a representation of ownership but rather a distribution of earnings to stockholders.