Which of the Following Statements Is True About Common Stocks

question 21

Multiple Choice

Which of the following statements is true about common stocks as investments?

• A) Stocks are among the riskiest of all investments.
• B) Stocks are most suitable for investors who seek security.
• C) Stocks will never become worth less than their purchase price.
• D) Stock prices reflect only government action.
• E) Stock prices are easily manipulated.

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Definitions:

Recognize New Information

The cognitive process of identifying and understanding previously unseen data or facts.

Stress Episode

A specific instance or period in which an individual experiences physical or psychological stress, characterized by feelings of tension, pressure, and anxiety.

Personality

The relatively stable set of psychological characteristics that influences the way an individual interacts with his or her environment.

Stress Reaction

A response or change in the body or mind when presented with stressors, affecting an individual's health and wellbeing.