Claire Was Trying to Decide If She Should Buy a Share

question 9

Multiple Choice

Claire was trying to decide if she should buy a share of stock in her favorite company or a bond issued by that same company.She discussed the dilemma with her father.Her father made the following five statements.All of them are accurate except for one.Which one is the exception?

• A)"If you buy a share of stock you will own a piece of the company"
• B)"If you buy a bond you will own a piece of the company"
• C)"If you buy a bond and change your mind you can sell it on the secondary bond market"
• D)"You should be careful because if you buy a share of stock you could loose your original investment"
• E)"If you buy a stock it may be worth more in the future"

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Definitions:

Transaction

The act of conducting business or exchanging goods, services, or financial assets between parties.

Power of Attorney

A legal document granting one individual the authority to act on behalf of another in legal or financial matters.

Real Estate Broker

A licensed professional who arranges real estate transactions, putting buyers and sellers together and acting as their representative in negotiations.

Permitted Actions

Actions that are allowed or sanctioned by law, regulation, or explicit permission.