Jeff Goldblum has just purchased a security which has no maturity date and no promised dividend payments. He can recoup his investment by either selling the security to another individual. What type of security did Jeff purchase?

Question

Business

Nelson Faulkner

3 December, 16:14

Jeff Goldblum has just purchased a security which has no maturity date and no promised dividend payments. He can recoup his investment by either selling the security to another individual. What type of security did Jeff purchase?

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Answers (1)

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Jenny Jarvis · Answer 1

Answer: Common stock

Explanation: In simple words, these are the securities which represent ownership in an organisation. The common stocks has no maturity date as it is the ownership right and will remain until the liquidation of the company.

The dividends to common stockholders are not fixed and depends on the profit that the company made in the year. They are paid dividends after debt holders.

They can sell their shares to other participants through securities markets like stock exchanges etc.

Hence from the above we can conclude that Jeff has purchased common stock.