Which of the Following Statements About the Stock Market Is

question 13

Multiple Choice

Which of the following statements about the stock market is true?

• A) Government regulation ensures that the stock market will go up each year, even if month to month there may be declines in stock values.
• B) People who want to buy shares of stock in an established company will generally contact a representative of a venture capital firm.
• C) Some investors diversify by investing in a group of many different stocks, such as those in the S&P 500 Index.
• D) Diversifying by buying shares of stock in many different companies can eliminate the risk taken by the stock investor.

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Definitions:

Specific Performance

A legal remedy where a court orders the party breaching a contract to perform the contract's specific duties rather than paying monetary damages.

Assignee

A person or entity to whom rights or interests have been transferred by another, known as the assignor.

Contractual Rights

Legal rights granted to parties within a contract, allowing them to demand the performance of certain duties outlined in the agreement.

Assignor

An assignor is a party that transfers rights or interests in a contract or property to another party, known as the assignee.