Which of the Following Is True of Stocks

question 51

Multiple Choice

Which of the following is true of stocks?

• A)It refers to a loan from the investor to a company or government entity.
• B)It refers to the simultaneous and instantaneous purchase and sale of a currency for a profit.
• C)It refers to the practice of buying and selling a currency with the expectation that the value will change and result in a profit.
• D)It refers to a type of equity security that gives the holder an ownership of a company's assets and earnings.
• E)It refers to the technique of protecting against the potential losses that result from adverse changes in exchange rates.

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Definitions:

Legitimate Power

Authority that is officially sanctioned or recognized, based on a person's position within an organizational hierarchy.

Reward Power

The ability of an individual to influence the behavior of others by controlling access to desired resources or rewards.

Upward Appeals

The argument that the task has been requested by higher management, or a request to higher management to assist in gaining cooperation.

Coalition Building

The process of forming alliances or coalitions among individuals or groups to achieve a common goal or undertake a specific project.