4
QuizMultiple Choice

Saving and Investing

Question 4 • WA-Financial Education

What is meant by the term "diversifying stocks”?

Answer
A
profiting from investing in stocks
B
taking risks in the stock market
C
owning shares of a variety of stocks
D
purchasing stock from one industry

Explanation

Diversifying stocks means spreading your investments across different stocks rather than putting all your money into just one. Owning shares of a variety of stocks can reduce the impact if one company performs poorly. Therefore, the correct choice is owning shares of a variety of stocks.

AI-written and checked against the verified answer.

Previous
Next