A stock as a form of capital of a company comprises

Assessment: WAEC SSCE - Financial Accounting - 2009 (Objective) Subject: Financial Accounting

Question 1 Report

A stock as a form of capital of a company comprises
Answer Details
A stock, as a form of capital of a company, comprises units of shares. Shares are units of ownership in a company that are issued to investors in exchange for capital. When a person buys a share of a company's stock, they become a part owner of the company and are entitled to a portion of its profits as well as the right to vote on company matters. The total amount of shares issued by a company represents the total amount of capital it has raised through stock issuance. Therefore, the answer to the question is "units of shares."
Read lesson note on Nature And Significance Of Accounting (JAMB)
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