What Does "Hedging" Mean

question 51

Multiple Choice

What does "hedging" mean?

• A) Trying to persuade someone to do something
• B) Taking a risk that may result in a negative consequence
• C) Investing in a new idea or product
• D) Pulling back from making an absolutely certain, definitive statement

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Definitions:

Research and Development

Activities undertaken by a business or organization to innovate and introduce new products or services, or to improve their existing offerings.

Stockholders' Equity

Represents the residual interest in the assets of a corporation after deducting liabilities, effectively the net worth attributable to shareholders.

Common Stock

Equity securities that represent ownership in a company, entitling holders to vote on corporate matters and receive dividends.