ECONOMICS (CBSE/UGC NET)

ECONOMICS

SAVING AND INVESTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Identify the investment:-risky-ownership in a corporation-pays dividends-potential for reward is high
A
stocks
B
bonds
C
commodities
D
real estate
Explanation: 

Detailed explanation-1: -The highest risk investments are cryptocurrency, individual stocks, private companies, peer-to-peer lending, hedge funds and private equity funds. High-risk, volatile investments may bring high rewards, or they may bring high loss.

Detailed explanation-2: -But there are no guarantees of profits when you buy stock, which makes stock one of the most risky investments. If a company doesn’t do well or falls out of favor with investors, its stock can fall in price, and investors could lose money.

Detailed explanation-3: -Share values can be volatile and can fall dramatically in price, even to zero. Owners of ordinary shares are generally the last in the line of creditors if a company fails and there may be no chance of getting any money back if the company goes into liquidation or receivership.

Detailed explanation-4: -Penny Stocks. There’s usually a good reason penny stocks are so cheap. IPOs. Cryptocurrency. Anything You Buy on Margin. Leveraged ETFs. Collectibles. Junk Bonds. Shares of a Bankrupt Company. More items •18-Nov-2022

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