Drew Is a Common Stockholder in a Corporation

question 12

Multiple Choice

Drew is a common stockholder in a corporation. She paid $7,600 to purchase the stock of the company. However, the price of the stock goes down by $300 in the market soon after she makes the purchase. In this case, Drew will experience _____.

• A) debt capital
• B) price dispersion
• C) a price override
• D) a capital loss

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Definitions:

Community College

A type of educational institution that offers two-year degrees (associates degrees), certifications, and sometimes, preparation for transfer to a four-year college or university.

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A chemical compound often used in beverages that can alter mood and behavior, with the potential for dependency and health issues.

Negative Habit

A repetitive behavior that is detrimental to one's physical or mental health, often challenging to break due to its ingrained nature.

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The state of performing at one’s maximum potential, achieving the best possible results in a given task or activity.