All of the Following Are True Regarding a Shareholder's Diversified

question 100

Multiple Choice

All of the following are true regarding a shareholder's diversified stock portfolio except which one?

• A)The portfolio will contain the stock of just one company.
• B)The diversified portfolio reduces the risk faced by the shareholders.
• C)The portfolio will contain stocks from a variety of companies.
• D)The shareholder has balanced the risk of bad outcomes with positive outcomes.

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Definitions:

Public Float

The number of shares of a publicly-traded company that are available for trading by the general public.

Integrated Registration

A streamlined process that allows for the simultaneous registration or recording of multiple aspects or items through a single procedure.

Small Business Issuers

Refers to companies of a certain size that issue securities and are subject to specific regulatory measures aimed at small entities.

Registration of Securities

The process by which securities are registered with the Securities and Exchange Commission or a state securities agency prior to being offered to the public.