QuestionAugust 6, 2025

Investing in stocks is risky because: A. they are generally short-term investments. B. the value of the stock can fall below what you paid for it C. stocks can increase in value leading to high tax bills. D. the value of the stock can increase more than you paid for it.

Investing in stocks is risky because: A. they are generally short-term investments. B. the value of the stock can fall below what you paid for it C. stocks can increase in value leading to high tax bills. D. the value of the stock can increase more than you paid for it.
Investing in stocks is risky because:
A. they are generally short-term investments.
B. the value of the stock can fall below what you paid for it
C. stocks can increase in value leading to high tax bills.
D. the value of the stock can increase more than you paid for it.

Solution
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Answer

B. the value of the stock can fall below what you paid for it. Explanation 1. Identify the risk factor The primary risk in investing in stocks is the potential for loss, specifically when the value of the stock falls below the purchase price.

Explanation

1. Identify the risk factor<br /> The primary risk in investing in stocks is the potential for loss, specifically when the value of the stock falls below the purchase price.
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