In Which of the Following Cases Might an Investor Receive

question 82

Multiple Choice

In which of the following cases might an investor receive help from The Securities Investor Protection Corporation?

• A) The investor purchased a stock at $40 per share because his broker recommended it. Over the next six months, it fell to $20 per share.
• B) The investor purchases stock in a company that shortly later was forced into bankruptcy because of accounting fraud.
• C) The investor holds $100,000 worth of stock in certificate form. The certificates are destroyed in a fire.
• D) A broker took money sent by investors to cover stock purchases, but never invested it and sent falsified statements to cover the fraud.

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Definitions:

Inflammation

A biological response of body tissues to harmful stimuli, such as pathogens, damaged cells, or irritants, characterized by redness, heat, swelling, and pain.

Hemorrhage

is the escape of blood from a ruptured blood vessel, leading to bleeding internally or externally.

Hypothalamus

An area of the brain situated beneath the thalamus that regulates the autonomic nervous system and the function of the pituitary gland, overseeing body temperature, thirst, hunger, and various other systems that maintain internal balance.

Vitamin D

A fat-soluble vitamin that is essential for maintaining healthy bones and teeth, and supporting the immune system.