Question

For a 70-year-old investor, selling a weak stock at a loss may be (5 points)
O
a smart move to avoid potential additional future losses

® a poor decision, as the stock will most likely come back

an opportunity to buy as many as possible of the same stock

a red flag for the government to penalize that company

Answer 1

When you acquire stock in a firm, you are acquiring a little portion of that company known as a share. The correct option is A.

What are stocks?

When you acquire stock in a firm, you are acquiring a little portion of that company known as a share. Investors buy stocks in firms they believe will increase in value. If this occurs, the value of the company's shares rises as well.

For a 70-year-old investor, selling a weak stock at a loss may be a smart move to avoid potential additional future losses.

Hence, the correct option is A.

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