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Which of the Following Is True of Stocks

Question 59

Multiple Choice

Which of the following is true of stocks?


A) It refers to a loan from the investor to a company or government entity.
B) It refers to the simultaneous and instantaneous purchase and sale of a currency for a profit.
C) It refers to the practice of buying and selling a currency with the expectation that the value will change and result in a profit.
D) It refers to a type of equity security that gives the holder an ownership of a company's assets and earnings.
E) It refers to the technique of protecting against the potential losses that result from adverse changes in exchange rates.

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