Money Smarts Quiz Answer (4c)
c. you can lose only a portion of the money you used to buy the stock
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.
Question 4, Answer c