For an Investor Who Wants to Speculate, Which of the Following

question 70

Multiple Choice

For an investor who wants to speculate, which of the following investments would be appropriate?

• A)red-chip stocks
• B)options
• C)utility stocks
• D)corporate bonds
• E)preferred stock issues

---

Definitions:

Capital Balances

The amounts recorded in a company's capital accounts, reflecting the net investment of owners or partners.

Net Income

This is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, showing the company's profitability.

Income Ratio

A financial metric that measures the amount of income generated relative to another financial metric, such as sales or assets.

Net Income

The residual income of a firm after adding total revenue and gains and subtracting all expenses and losses for the reporting period, effectively the company's profit.