Dana believes that a new phone to be sold by Ear Fruit Inc. will become the most popular phone in the global market. Dana enters into a contract to buy 500 shares of Ear Fruit stock, anticipating an increase in its value. The phone does not become popular, and the price of the stock does not rise. Dana can recover

Question

Quizplus · Accepted Answer

Dana entered into the contract voluntarily, making it a valid agreement. The fact that the phone did not become popular and the price of the stock did not rise does not entitle Dana to recover anything. The risk of investment is on the investor, and in this case, Dana assumed that risk by purchasing the stock with the expectation of an increase in its value. Therefore, Dana cannot recover any amount.

Dana Believes That a New Phone to Be Sold by Ear