Which statement is TRUE regarding stocks?

Question

Quizplus · Accepted Answer

A share of stock represents proportional ownership interest in a business. Thus, stockholders are exposed to all the risks that impact the business environment, including interest rates, competition from other firms, input and output price risk, and others. In return for being willing to bear this risk, shareholders may receive dividends and/or capital appreciation in the value of their share(s). In any given year, stocks may fair better or worse than other investments, but there is substantial evidence that for long holding periods (20-plus years), stocks tend to outperform other investment choices.

Which Statement Is TRUE Regarding Stocks