All of the Following Would Satisfy the Safety Factor of Investing

question 22

Multiple Choice

All of the following would satisfy the safety factor of investing except

• A) savings accounts.
• B) blue-chip stocks.
• C) a certificate of deposit.
• D) highly rated municipal bonds.
• E) antiques and collectibles.

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Definitions:

After-tax Cost

The expense of an action or transaction after considering the impact of taxes.

Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Growth Rate

The percentage increase in a company's revenue or earnings from one period to the next, demonstrating how quickly it is expanding.

Market Price

The amount for which something can be sold on a given market at a specific point in time.