Compared to Buying Stock in a Publicly-Held Firm,investing in a Private

question 104

Multiple Choice

Compared to buying stock in a publicly-held firm,investing in a private firm

• A) is often considered safer because private firms are subject to stricter SEC regulations.
• B) is often considered riskier because public firms are subject to stricter SEC regulations.
• C) is often considered riskier because private firms are subject to stricter SEC regulations.
• D) is often considered safer because public firms are subject to stricter SEC regulations.

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Definitions:

Calculated

Done with full awareness or intentionality, often involving mathematical or strategic planning.

Microsystems

The immediate environments (such as family, school, and peer group) in which individuals interact directly and which influence their development.

Mesosystems

In ecological systems theory, the interaction between two or more settings that the developing person actively participates in, such as the connection between family experiences and school life.

Exosystems

A layer in Bronfenbrenner's ecological systems theory referring to settings that indirectly influence an individual, such as parents' workplaces.