32
QuizMultiple Choice

Investing

Question 32 • CHS Economics

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 an investment in the company’s potential progress and profits, so choice B is correct. Choice C describes commodities, such as raw materials and natural resources, rather than stocks.

AI-written and checked against the verified answer.

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