Which of the Following Happens When a Person Buys Shares

question 122

Multiple Choice

Which of the following happens when a person buys shares in a mutual fund?

• A)Indirectly, the person becomes owner or creditor to many companies.
• B)The person lends to, and borrows from the other shareholders in the mutual fund.
• C)The person receives a fixed interest as long as he or she does not sell the shares.
• D)The person lends money to the federal government.

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Definitions:

Environmental Force

Refers to external factors such as social, economic, legal, and technological aspects that impact an organization's operations and can influence its performance and strategy.

Economic Recession

A significant decline in economic activity spread across the economy, lasting more than a few months.

2007-2009

The period marked by a significant global financial crisis, often referred to as the Great Recession, characterized by major declines in economic activity worldwide.

Economic Force

Factors such as inflation, unemployment rates, and economic growth that influence the business environment and economic policy.