In the context of stocks, the characteristic that does not describe a stock is:
C. No certificate of ownership
Explanation:
1. Stocks represent ownership in a company, and investors who purchase stocks are essentially buying a share of that company. As a result, stockholders do receive a certificate of ownership, which serves as proof of their ownership stake in the company.
2. The other characteristics mentioned in the question are common attributes of stocks:
A. Stocks do not guarantee that investors will get their money back, as the value of stocks can fluctuate based on market conditions.
B. Investors can earn money from stocks through capital gains, which are profits made from selling a stock at a higher price than what was paid for it.
D. Stocks do not have a maturity date, unlike bonds which have a predetermined date when the principal amount is repaid.
Therefore, the characteristic "No certificate of ownership" does not describe a stock, as investors do receive a certificate indicating their ownership stake in the company when they purchase stocks.
