What Is the Term for Buying Several Different Kinds of Investments

question 100

Multiple Choice

What is the term for buying several different kinds of investments rather than just one?

• A) spreading
• B) shorting
• C) margin buying
• D) diversification
• E) management

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Definitions:

Hired Managers

Individuals employed by the owners of a firm to run the day-to-day operations and make business decisions.

Business Corporations

Legal entities that are formed to engage in business activities, owned by shareholders who share in the profits but are typically not liable for the company's debts.

Time-Value

A concept in economics that money available now is worth more than the same amount in the future due to its potential earning capacity.

Money

Any item that is generally acceptable to sellers in exchange for goods and services.