You have just purchased 10 shares of a stock selling at $50 per share. Since that time, the company was found to be in violation of several environmental laws and has several major lawsuits outstanding. Which of the following statements is most correct?
A) You could lose up to your $500 investment.
B) You could lose more than your $500 investment.
C) You cannot lose your investment based on the actions of the company.
D) By owning stock in the company, you have also technically violated the law.
E) None of the above
Answer: A
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