ECONOMICS (CBSE/UGC NET)

ECONOMICS

FINANCIAL MARKETS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
When you see a red dollar amount typed inside parentheses on your Gains & Losses page it means
A
The company you’re invested is no longer listed on the NYSE
B
the company, bond, or mutual fund can’t be traded anymore.
C
the company in which you are invested is private company.
D
the investment has lost money.
Explanation: 

Detailed explanation-1: -In finance, the color red has several negative connotations that generally revolve around losing money. “Red” can denote a negative balance on a company’s financial statement or an individual’s bank account. It can also signify unfruitful investments, as well as unfavorable regulations governing businesses.

Detailed explanation-2: -Red indicates the stock is trading lower than the previous day’s close. Blue or white means the stock is unchanged from the previous closing price.

Detailed explanation-3: -The phrase “in the red” means that business is in debt and owes money. The red ink signifies financial losses for the business.

Detailed explanation-4: -Investments held for one year or more appear as long-term assets on the balance sheet. Investments used to generate cash within the current operating period (within 12 months) appear as current assets and are called “treasury balances” or “marketable securities.”

There is 1 question to complete.