Question

Which of the following is not true in regards to investing in stock?
A. A stockholder will always receive a profit when the stock is sold.

B. Depending upon the current market price, stockholders may pay different prices
for the same stock

C. A stockholder owns a part of a company.

D. A stockholder may or may not receive a dividend.

Answer 1

This is not true with regards to investing in stock: A. A stockholder will always receive a profit when the stock is sold.

Who is a stockholder?

A stockholder is a part-owner of a company who holds a stock.

The stockholder or shareholder may be a person, an institution, or another company.

Thus, it is not true that A. A stockholder will always receive a profit when the stock is sold.

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