CUET Preparation Today
| What is the primary function of a share in a company? |
To represent ownership interest To signify company liabilities To indicate the company's expenses To serve as a form of company debt |
| To represent ownership interest |
| The primary function of a share in a company is to represent ownership interest in that company. When individuals or entities purchase shares of a company, they become shareholders and thus owners of a portion of the company. Each share that is issued by the company represents a fractional ownership stake in the overall company. |
