Money Smarts Quiz Answer (4a)

a. you cannot lose money

The correct answer is: b. you can lose all of the money you used to buy the stock

One of the riskiest investments is buying stock in a new company. New companies go out of business more often than companies that have been in business for a long time. If you buy stock in small, new companies, you could lose it all. Or the company could turn out to be a success. You'll have to do your homework and learn as much as you can about small companies before you invest. If you decide to buy stock in a new or small company, only invest money that you can afford to lose.

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Question 4, Answer a