After Fernanda buys stock in a "hot" new start-up company, the company fails and she loses all of her money. Fernanda no longer invests in start-up companies. This is an example of negative punishment.

Question

Quizplus · Accepted Answer

Negative punishment refers to the removal of a rewarding stimulus after a behavior to decrease the likelihood of that behavior occurring again. In this case, Fernanda's experience of losing all her money after investing in the start-up company acts as a negative punishment that decreases her likelihood of investing in start-up companies in the future.

After Fernanda Buys Stock in a "Hot" New Start-Up Company