Glen, a Line Manager, Is Informed That His Company Would

question 11

Multiple Choice

Glen, a line manager, is informed that his company would be introducing a stock purchase plan for employees. This implies that_____.

• A) the employer will provide company stocks to employees as incentives
• B) Glen will be given a few company stocks for free, which he can later sell at the market rate
• C) Glen can buy shares in the company at a discount
• D) Glen would be provided financial counseling on the purchase and sale of stocks

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Definitions:

Equity Mutual Funds

Investment funds that pool money from many investors to purchase a portfolio of stocks, aiming to provide returns through dividends and capital gains.

Risky

An adjective describing the likelihood of losing part or all investment due to various types of investment or market risks.

Equity Growth Fund

A mutual fund that invests primarily in stocks with the goal of capital appreciation rather than income.

Sector Fund

A mutual fund that invests solely in businesses operating in a specific industry or economic sector, aiming to capture sector-specific growth.