Ownership of corporate stocks is represented by what?

Prepare for the DEAD Legal and Regulatory Test. Use flashcards and multiple choice questions with detailed hints and explanations for each query, ensuring readiness for your exam!

The correct answer is stock certificates because they serve as the formal proof of ownership in a corporation's stock. When an individual or entity purchases shares in a corporation, they receive a stock certificate that details the number of shares owned and the company in which those shares are held. This certificate illustrates the shareholder's rights, including voting rights and entitlement to dividends.

Other options do not pertain directly to the ownership of corporate stocks. Bond certificates represent ownership in a corporation's debt; they are issued when investors purchase bonds, which are essentially loans made to the corporation. Interest certificates are not a common term relating to corporate ownership; they could refer to documents confirming interest owed but do not indicate ownership. Dividend tickets, while related to receiving dividends, do not represent ownership and are typically utilized to claim dividends rather than establish ownership of stock.

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