What characterizes a stock insurance company?

A stock insurance company is characterized by being owned by stockholders. This means that the company is structured as a corporation, and the ownership is distributed among individuals or entities that hold shares of the company's stock. Stockholders are typically entitled to receive dividends based on the company’s profitability, and they have voting rights that allow them to influence corporate decisions and elect the board of directors.

In contrast, a mutual insurance company, which would be owned by policyholders, operates under a different model where the policyholders are effectively the owners of the company. This distinction is key in understanding how stock insurance companies operate and how they are financed. Additionally, the other options mention ownership structures or funding methods that do not accurately reflect the nature of stock insurance companies in the broader context of the insurance industry.