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:

Alkyne

A hydrocarbon with one or more carbon-carbon triple bonds.

2-Pentyne

An organic compound belonging to the alkyne family, characterized by a triple bond between two carbon atoms.

Carbon Atoms

The basic building blocks of organic molecules, characterized by having four bonds, either to other carbon atoms or different elements.

Alkene

Hydrocarbons that contain at least one carbon-to-carbon double bond, characterized by the formula CnH2n.