Some People Make Purchases Without Complete Information Because

question 63

Multiple Choice

Some people make purchases without complete information because:

• A)they are irrational.
• B)the opportunity cost of getting more information outweighs the benefit of having more information.
• C)the benefit of having more information outweighs the cost of acquiring it.
• D)No one makes purchases without complete information.

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Definitions:

Original Issuer

The entity or organization that initially offers or issues a financial instrument or security to the public.

Special Relationship

A legal concept denoting a duty of care that exists between parties, beyond general public duty.

Reporting Issuer

A company whose securities are traded on a stock exchange and must regularly disclose financial and other significant information.

Shares

Units of ownership interest in a corporation or financial asset, providing an equitable distribution of profits, if any, in the form of dividends.