A Common Way of Saying You Need to Diversify Your

question 126

Multiple Choice

A common way of saying you need to diversify your investments is

• A) A bird in the hand is worth two in the bush.
• B) A stitch in time saves nine.
• C) Birds of a feather flock together.
• D) Don't judge a book by its cover.
• E) Don't put all of your eggs in one basket.

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Definitions:

GAAP

Generally Accepted Accounting Principles (GAAP) are a collection of commonly-followed accounting rules and standards for financial reporting and auditing in the U.S.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that aims to ensure consistency and transparency in financial reporting globally.

Unrealized Declines

Reductions in the estimated market value of an investment that has not yet been sold by the holder.

Stockholders' Equity

Stockholders' Equity is the residual interest in the assets of a corporation after deducting liabilities, representing ownership equity spread amongst shareholders.