Asked by Salvi Sharma on Jun 19, 2024
Verified
The success of common stock investments depends on the success of ________.
A) derivative securities
B) fixed-income securities
C) the firm and its real assets
D) government methods of allocating capital
Common Stock Investments
Investments that involve buying equity shares of public companies, giving investors ownership interests and potential dividends.
Real Assets
Physical or tangible assets such as land, buildings, precious metals, or commodities, which have intrinsic value due to their substance and properties.
Fixed-Income Securities
Financial instruments that pay returns on a fixed schedule, including bonds, notes, and other debt instruments that offer fixed interest payments.
- Recognize various forms of financial securities and distinguish real assets from financial ones.
Verified Answer
BH
Brooke HammilJun 19, 2024
Final Answer :
C
Explanation :
The success of common stock investments ultimately depends on the success of the firm and its real assets. This includes factors such as the company's profitability, growth potential, and overall financial health. The success of derivative securities, fixed-income securities, and government methods of allocating capital may indirectly impact the success of common stock investments, but they are not the primary determining factors.
Learning Objectives
- Recognize various forms of financial securities and distinguish real assets from financial ones.