Question

9) Which is a risk of being a stockholder?

A) may not get an increase in the amount of one's investment
B) can increase investment if the price of one's stock goes up
C) might receive dividends when the company makes a profit
D) able to vote for members of the board of directors

Answer 1

Answer: A.

Step-by-step explanation:

The answer to this problem is A. The answer is A because B, C, and D are all positive parts of being a stockholder whereas A is negative.

Answer 2

A) may not get an increase in the amount of one's investment is a risk of being a stockholder.

Stockholders or shareholders are investors who own a portion of a company's equity, represented by shares of stock. While being a stockholder comes with potential benefits such as capital gains, dividends, and voting rights, it also carries risks.

One of the most significant risks of being a stockholder is that the value of the stock can decrease, and the stockholder may lose some or all of their investment. This can happen due to a variety of factors, such as changes in the market, the company's financial performance, or global events that impact the economy.

Therefore, A) may not get an increase in the amount of one's investment is the risk of being a stockholder.