Question

When a person purchases stock in a company, he is in reality loaning money to the company.?

Answer 1

Answer: False

Explanation: When a person purchases a stock, they are not loaning money to the company. This is because they are an equity stakeholder in the company which means they own part of the company, but they are not loaning money. If they were loaning money, they would be buying a bond of that company

Answer 2

No , he is not.

When a person purchases stock in a company, he became parts of the owners of the company.

The company does not we him anything. If company is making profit, he get a dividend payment. If don't, it's his risk for buying the stocks

hope this helps