Question

Graham Bell lost thousands of dollars speculating during the stock market crash of 2008. When his niece told him that she is planning to invest some of her funds in the IPO of an automobile​ company, he tried to dissuade her. Bell pointed to his experience and tried to convince his niece that her investment is a gamble that will put her entire wealth at risk. Which of the following is a flaw in​ Bell's reasoning?
a. He is confusing stocks and bonds.
b. He thinks that he had entered the markets at the wrong time.
c. He thinks that returns from stock market investments are uncertain.
d. He does not consider the fact that one cannot lose more than the amount paid for the stock.

Answer 1

Answer:

The correct answer is : D

Explanation:

When investing it has to be considered whether it is the proper time for you to invest or not. Besides, it's necessary to look at the best use of money. Another factor is the amount is capital you have can affect your decision for investing. Plus, the entire financial situation has to be analyzed.