Mr Whiner Bought 1,000 Shares of Sure-Fire, Inc

question 28

Essay

Mr. Whiner bought 1,000 shares of Sure-Fire, Inc. common stock at $85 and sold it three months later at $73. He lost $12,000 plus commissions on this ill-fated stock purchase. He then contacted the SIPC saying that he wanted to file a claim for his investment losses. Is this loss covered by SIPC? What losses are covered?

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Definitions:

Equity Theory

Equity Theory suggests that individuals seek fairness in relationships, feeling satisfied when they perceive that their inputs and outcomes are proportional to those of their comparison others.

Continuance Commitment

Commitment that results when an employee remains with a company because of the high cost of losing organizational membership including monetary and social costs.

Normative Commitment

A commitment to the organization based on feelings of obligation.

Performance Review

A formal assessment where an employee's work performance is evaluated and discussed.