From an investor's perspective, which of the following statements is true about common stocks as investments?
A) Stocks are among the riskiest of all investments.
B) Stocks are most suitable for investors who seek security.
C) Stocks will never become worth less than their purchase price.
D) Stock prices reflect only government action.
E) Stock prices are easily manipulated.

Question

Quizplus · Accepted Answer

Common stocks are generally considered to be high-risk investments, as their value can be affected by many factors such as economic conditions, company performance, industry trends, and even geopolitical events. While stocks do offer the potential for high returns, they also come with the risk of significant losses. Therefore, stocks are typically not considered suitable for investors who seek security, as their value can fluctuate greatly over time.

From an Investor's Perspective, Which of the Following Statements Is