Companies issue stock to raise money, this is called Equity financing. (True/False)

Individuals that make an investment to become part owners of a company are called stockholders. (True/False)

A company that earns a yearly profit must pay out a dividend. (True/False)

When shareholder owns stock in XYZ corporation and decides to sell it, they typically sell it directly back to the XYZ corporation. (True/False)

People buy stocks because they can provide a source of income if the company pays dividends and there is potential for capital appreciation (stock price increases). (True/False)