What Is the Best Description of a Retail Investor

question 14

Multiple Choice

What is the best description of a retail investor?

• A)An individual or small business that is not a wholesale investor; generally a high-wealth individual who is not acting as an institutionalised professional investor
• B)A retail chain that wants to buy the business
• C)A conglomerate or corporation that is a wholesale investor
• D)None of these choices

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Definitions:

Law of Effect

A principle in psychology proposed by Edward Thorndike that suggests behaviors followed by positive outcomes are more likely to be repeated, while those followed by negative outcomes are less likely to be repeated.

Behaviors

Actions or reactions of an individual or system in response to external or internal stimuli.

Satisfying Effect

Describes the fulfillment or contentment felt after needs or desires are met, often used in the context of consumer behavior and decision-making.

Assimilation

The cognitive process of integrating new information into existing cognitive schemas, perceptions, and understanding.