Whenever a Set of Stock Prices Go Unnaturally High and Subsequently

question 55

Multiple Choice

Whenever a set of stock prices go unnaturally high and subsequently crash down, the market experiences what we call a(n) :

• A)financial meltdown.
• B)irrational behavior.
• C)stock market bubble.
• D)none of these.

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Definitions:

Entrepreneurs

Individuals who organize and operate businesses, taking on greater than normal financial risks in order to do so.

3 Fs

often refers to the informal investors in early-stage startups: friends, family, and fools, who provide initial capital.

Raise

The act of collecting or soliciting funds or resources, often for a business venture or project.

Due Diligence Period

A set timeframe during which detailed investigation and evaluation is conducted before entering into an agreement or transaction.