Question

Which answer supports the idea that stock market investments do not always pay off. 1. But unfortunately, that's how many new investors think of the stock market — as a short-term investment vehicle that either brings huge monetary gains or devastating losses. 2. If the company fails, the founders don't lose all of their money, they lose several thousand smaller chunks of other people's money. 3. It is these ever-shifting market forces that make short-term movements of the stock market so difficult to predict. And that is precisely the reason why short-term stock market investing is so risky. 4. The inherent risk of the stock market is that any number of forces — logical or otherwise — can push prices up or down.

Answer 1

Option 4 supports the idea that stock market investments do not always pay off because changes in stock prices can occur due to various factors.

Step-by-step explanation:

The answer that supports the idea that stock market investments do not always pay off is option 4: The inherent risk of the stock market is that any number of forces — logical or otherwise — can push prices up or down. This option explains that stock prices are influenced by various unpredictable factors, which means that investing in the stock market can result in losses as well as gains.

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