ECONOMICS (CBSE/UGC NET)

ECONOMICS

SAVING AND INVESTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following is not true in regards to investing in stock?
A
A stockholder owns a part of a company.
B
Depending upon the current market price, stockholders may paydifferent prices for the same stock.
C
A stockholder may or may not receive a dividend.
D
A stockholder will always receive a profit when the stock is sold.
Explanation: 

Detailed explanation-1: -The correct answer is stock will not be issued directly.

Detailed explanation-2: -Stockholders can only make money by collecting dividends. People who invest in the stock market will automatically make money. You can only buy stock in publicly held companies. Preferred stock means the company is preferred over other companies in a particular 1.

Detailed explanation-3: -Stockholders do not have the right to manage a company’s day-to-day affairs. However, stockholders do have the right to vote on important company matters.

Detailed explanation-4: -Time Horizon: Investment Strategy: Check Fundamentals before buying a stock: Stock Performance compared to its peers: Shareholder Pattern: Mutual Funds Holding: Size of the Company: Dividend History: More items •14-Nov-2022

There is 1 question to complete.