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:

Lawsuit Likelihood

The probability or risk of legal action being initiated based on certain behaviors, decisions, or situations.

Progressive Discipline System

A step-by-step process designed to give employees opportunities to correct behavior or performance issues before more severe actions are taken.

Official Spoken Warning

An official spoken warning is a formal verbal notice given to an employee about a breach in policy or performance issue that needs correction.

Employment-At-Will Doctrine

A legal principle that employment is for an indefinite period and may be terminated by either the employer or the employee without cause.