14
QuizMultiple Choice

Investing

Question 14 • Personal Finance - EL3403

Which statement best describes stocks?

Answer
A
They should be purchased when prices are high and sold when prices are low.
B
They are an investment in a company’s progress and profits.
C
They are a type of investment that includes raw materials and natural resources.
D
They should be purchased only as long-term investments.

Explanation

A stock represents partial ownership in a company. Buying stock is therefore an investment in the company’s progress and potential profits. Raw materials and natural resources are commodities, not stocks, and stock prices are not best approached by buying high and selling low.

AI-written and checked against the verified answer.

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