Question

when an investor purchases stock, he or she becomes a(n) ______ of the issuing company.

○ director

○ creditor

○ owner

○ employee

Explanation:

To solve this, we analyze each option:

• A director is part of management, not directly from stock purchase.
• A creditor is owed money, not related to stock ownership.
• When an investor buys stock, they own a portion of the company, so they are an owner.
• An employee works for the company, not from stock purchase.

Answer:

C. owner