Which of these statements is true?
A) When people purchase a stock, they know exactly what their dollar and percent return are going to be.
B) Many people purchase stocks as they find comfort in the certainty for this safe form of investing.
C) When people purchase a stock, they know the short-term return, but not the long-term return.
D) When people purchase a stock, they do not know what their return is going to be-either short term or in the long run.

Question

Quizplus · Accepted Answer

When people purchase a stock, they are investing in a company's future, which is inherently uncertain. The stock market is volatile, and returns can fluctuate widely in the short term and the long run, making it impossible to know the exact return in advance.

Which of These Statements Is True