Many Individuals Will Refuse to Sell a Stock or a Mutual

question 30

Multiple Choice

Many individuals will refuse to sell a stock or a mutual fund at a loss even though it may be clear that the investment will not turn around. This is an example of a:

• A) sunk-cost trap.
• B) anchoring trap.
• C) status-quo trap.
• D) confirming-evidence trap.

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Definitions:

University Class

A group of students who meet regularly to study a subject under the guidance of a teacher or professor at a university.

Social Adaptation

The process by which individuals adjust their behaviors, attitudes, and social practices to fit into or cope with the norms, values, and culture of a new social environment.

Selling Drugs

The act of distributing illegal or controlled substances in violation of laws; often subjects the seller to criminal charges.

Merton

Robert K. Merton was an American sociologist known for his theories on social structure, anomie, and the sociology of science.