When Investors Invest in Something Simply Because Everyone Else Is

question 88

Multiple Choice

When investors invest in something simply because everyone else is doing it, they are:

• A) suspect to "tulip mania."
• B) following a "herd instinct."
• C) acting objectively on full information available in the market.
• D) leveraging market performance for their own gain.

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Definitions:

Public Service

A service provided by the government to its citizens, either directly or through financing private entities, to meet a public need.

Recurrent Themes

Ideas or motifs that appear repeatedly within a specific context, such as a literary work, discussion, or area of study.

Privatization

The transfer of ownership and management of services or assets from the public sector to private individuals or organizations.

Democratic Principles

Foundational ideas that support fairness, equality, and the participation of citizens in government decisions or policies.