The Most Common Reason Given for Investing Is

question 137

Multiple Choice

The most common reason given for investing is

• A)enhancing current income.
• B)saving for retirement.
• C)sheltering earnings from taxes.
• D)paying for an expensive vacation.
• E)saving for college education.

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Definitions:

Parent's Control

The influence and authority a parent company holds over its subsidiary's operations and financial decisions.

Subsidiaries

Companies controlled by a parent company through the ownership of more than half of their voting stock or through other means of control.

Available-for-Sale Securities

Debt or equity securities not classified as held-to-maturity or trading securities, measured at fair value, with changes in value recorded in other comprehensive income.

Fair Value

An estimate of the price at which an asset would trade in a fair transaction between willing market participants, reflecting its intrinsic value.