13. what is a good definition of diversification? creating investments that you can give to other investors…

13. what is a good definition of diversification? creating investments that you can give to other investors investing in several different companies so if one fails, you still have investments in other companies investing in one company at a time in order to put all your money in one place none of the above 14. which of these is an accurate statement about preferred stock? stock that costs less money but will make money in the end if invested wisely stock that has a high risk of losing money if invested wisely stock that usually costs more money but will make money in the end if invested wisely stock that has a high risk of making money if invested wisely 15. what is the correct term to describe an asset that you can quickly convert to cash? a loose asset a hard asset a fast asset a liquid asset

13. what is a good definition of diversification? creating investments that you can give to other investors investing in several different companies so if one fails, you still have investments in other companies investing in one company at a time in order to put all your money in one place none of the above 14. which of these is an accurate statement about preferred stock? stock that costs less money but will make money in the end if invested wisely stock that has a high risk of losing money if invested wisely stock that usually costs more money but will make money in the end if invested wisely stock that has a high risk of making money if invested wisely 15. what is the correct term to describe an asset that you can quickly convert to cash? a loose asset a hard asset a fast asset a liquid asset

Answer

Brief Explanations:

  1. Diversification in finance is spreading investments across different companies to reduce risk. If one fails, others may still perform well.
  2. Preferred stock typically has a higher initial cost compared to common - stock but offers more stable dividends and priority in asset distribution in case of liquidation, so it can be profitable if invested wisely.
  3. A liquid asset is an asset that can be quickly and easily converted into cash without significant loss in value.

Answer:

  1. investing in several different companies so if one fails, you still have investments in other companies
  2. stock that usually costs more money but will make money in the end if invested wisely
  3. a liquid asset