Most investors would be wise to purchase the common stock of companies that are in the introductory stage of their industry life cycle because it is in this stage that firms offer high,safe returns to investors.

Question

Quizplus · Accepted Answer

It is actually risky to invest in companies in the introductory stage of their industry life cycle because they are still in the process of establishing themselves and may not have a proven track record of success. Additionally, they may require significant capital investments that may not yield returns for several years. Therefore, investing in these companies comes with a higher degree of risk, and potential investors should carefully evaluate the company before making any investment decisions.

Most Investors Would Be Wise to Purchase the Common Stock