Albert, a First-Time Investor in the Stock Market, Has Limited

question 119

Multiple Choice

Albert, a first-time investor in the stock market, has limited knowledge in trading in the stock market. He thus needs someone to guide him while buying and selling shares. He also needs assistance in financial planning and identifying good investment opportunities. In this scenario, Albert should hire a(n) _____.

• A) full-service broker
• B) preferred stockholder
• C) securities dealer
• D) investment banker

Understand corporate governance structures, including the role of the board of directors and the audit committee.

Recognize the rights of shareholders in meetings, derivative suits, and the enforcement of claims.

Understand the concept of fiduciary duties and the business judgment rule as it applies to corporate governance.

Comprehend the mechanisms for shareholder meetings and the role of shareholders in calling these meetings.

---

Definitions:

Routine Activities Perspective

A theory that considers how deviant behavior, such as crime and substance abuse, emerges from the routines of everyday life.

Subcultures

Groups within a larger culture that distinguish themselves through a unique set of norms, values, beliefs, or practices.

Deviance

Behaviors, beliefs, or characteristics that are considered to violate social norms or expectations.

Routine Activities Perspective

A criminological theory suggesting that crimes occur when a motivated offender, suitable target, and lack of a capable guardian converge in time and space.