Which of the following is the best definition of diversification?
A) The sale of stock in a wholly owned subsidiary via an IPO.
B) A targeted share repurchase method.
C) The sale of assets, operations, divisions, and/or segments of a business to a third party.
D) Investment in more than one asset; returns do not move proportionally in the same direction at the same time, thus reducing risk.
E) Rules and practices relating to how corporations are governed by management, directors, and shareholders.
Correct Answer:
Verified
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A)
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