A tiny piece of a company that you can buy; if the company grows, your stake could grow too.

• A. ETF
• B. Bond
• C. Stock
• D. Mutual Fund

Answer: (C)

Stocks are shares that represent ownership in a specific company. When you buy a tiny piece, you become a partial owner of that company. If the company grows and earns more, the value of your share can rise, leading to potential gains as the stock price increases. You might also receive dividends if the company pays them, though that isn’t guaranteed.

An ETF is a fund that holds a basket of assets, so you own a slice of a broader portfolio rather than a single company. A bond is a loan you make to a company or government, with fixed interest and the return of principal at maturity, not ownership in the company. A mutual fund pools investors’ money to buy a mix of assets, and while it can include stocks, owning it doesn’t give you a direct stake in one specific company. The description in the prompt points to stock, which is ownership in a company and shares in its growth.