A negative impact on your net worth can be caused due to the stocks you own losing value when the market declines. Thus the correct option is C.
What is net worth?
Net worth is referred to as the valuation of assets owned by the owner after deducting the liabilities they carry, which helps to determine the profit and helps to know the with of the company in the market.
An increase in the assets shows positive effects on net worth whereas a decrease in the assets reflects a negative effect on the network. When you invest in stocks, here stocks will be considered an asset of the business.
When the owned stock loses its value in the market when the market declines this will be considered a decline in an asset which shows a negative impact on the net worth of an individual as well as an organization.
Therefore, option C The stocks you own lose value when the market declines appropriately.
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