Question

Which statement about investing in stocks is true?
A. Investors have the chance to own part of a company and potentially earn a high return, but it carries with it a larger level of risk.
B. Investors have the chance to ensure that they will see a fixed return on their investment, but that return will be relatively low.
C. Investors have the chance to pool their money with that of other individuals and groups, but it offers little freedom with regard to withdrawing one’s money from the pool.
D. Investors have the chance to loan money to a company in exchange for a fixed return, but it does not grant any ownership of that company.

Answer 1

Answer:

A. Investors have the chance to own part of a company and potentially earn a high return, but it carries with it a larger level of risk.

B. Investors have the chance to ensure that they will see a fixed return on their investment, but that return will be relatively low.

C. Investors have the chance to pool their money with that of other individuals and groups, but it offers little freedom with regard to withdrawing one’s money from the pool.

D. Investors have the chance to loan money to a company in exchange for a fixed return, but it does not grant any ownership of that company.