What are examples of ownership investments? Select all that apply.
A. Stocks
B. Bonds
C. Savings account
D. Fine art collection
http://articles.extension.org/pages/10939/investing-unit-4:-ownership-investments
What do you think?
The examples of ownership investments are:
A. Stocks
D. Fine art collection
To determine the examples of ownership investments, we need to understand the definition of ownership investments. Ownership investments refer to assets that give the owner a claim of ownership on a specific portion or entity, which may appreciate in value over time. They typically provide the possibility of generating returns through capital appreciation or rental income. Now, let's analyze each option to see if it qualifies as an ownership investment:
A. Stocks: Yes, stocks are considered ownership investments. When an individual purchases stocks of a company, they become a partial owner of that company and have ownership rights. The value of stocks can appreciate, providing potential profits to the owner.
B. Bonds: No, bonds are not considered ownership investments. Bonds are debt instruments issued by governments, municipalities, or corporations to raise funds. When an individual purchases a bond, they become a lender rather than an owner. The bondholder receives periodic interest payments and the principal amount upon maturity.
C. Savings account: No, a savings account is not typically considered an ownership investment. In a savings account, the owner deposits funds into a banking institution, which then holds the money and pays interest. The account holder does not have ownership rights over the bank or the underlying assets.
D. Fine art collection: Yes, a fine art collection can be considered an ownership investment. Owning valuable artwork gives the owner both ownership rights and the potential for appreciation in value over time. However, it's important to note that the art market can be volatile and the value of artwork may fluctuate significantly.
So, the correct answers to the examples of ownership investments are:
A. Stocks
D. Fine art collection