Being Able to Make Attributions for a Dip in a Stock

question 16

Multiple Choice

Being able to make attributions for a dip in a stock makes investors

• A) more likely to sell the stock, regardless of the credibility of the rumors.
• B) more likely to sell the stock, but only if the rumors are deemed credible.
• C) less likely to sell the stock, regardless of the credibility of the rumors.
• D) less likely to sell the stock, but only if the rumors are deemed credible.

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Definitions:

Trust Account

A bank account in which one party (the trustee) such as an attorney, holds funds belonging to another person (such as a client), a bank account into which funds advanced to a law firm by a client are deposited. Also called an escrow account.

Escrow Account

A financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction.

Advanced Funds

Money paid or received before a transaction or event has occurred, often as part of an agreement or to cover initial costs.

Ethical Opinion

An advisory statement issued by a professional organization or governing body that outlines the ethical standards of a particular profession or practice.