Describe the Bystander Effect

question 203

Essay

Describe the bystander effect.Explain the role of diffusion of responsibility in producing this effect.

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Definitions:

Bargain Purchases

Acquisitions made at a price significantly below the fair market value of the asset, resulting in an immediate gain for the purchaser.

Dividend Capture

A strategy in which an investor purchases securities to own them on the day of record and then quickly sells them; designed to attain dividends but avoid the risk of a lengthy hold.

Securities

Securities that signify ownership in a corporation listed on the stock market, a debt obligation with a government entity or company (bond), or entitlements to ownership through an option.

Day of Record

The date set by a company on which the investors must be on the company's books in order to receive a dividend.