In Which of the Following Cases Might an Investor Receive

question 82

Multiple Choice

In which of the following cases might an investor receive help from The Securities Investor Protection Corporation?

• A) The investor purchased a stock at $40 per share because his broker recommended it. Over the next six months, it fell to $20 per share.
• B) The investor purchases stock in a company that shortly later was forced into bankruptcy because of accounting fraud.
• C) The investor holds $100,000 worth of stock in certificate form. The certificates are destroyed in a fire.
• D) A broker took money sent by investors to cover stock purchases, but never invested it and sent falsified statements to cover the fraud.

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Definitions:

First-Class Lever

A lever system where the fulcrum is situated between the effort and the load, allowing for force multiplication or change of direction.

Scissors

A tool consisting of two pivoting blades crossed at a pivot point, used for cutting paper, cloth, and other materials.

Multimotor Unit Recruitment

The physiological process where the number of active motor units within a muscle increases to enhance the strength of muscle contraction.

Wave Summation

A phenomenon in muscle physiology where successive stimuli result in stronger muscle contractions than a single stimulus.