Does the concept of limited liability make owning stocks more or less attractive? Explain.
What will be an ideal response?
Limited liability makes owning stocks (equities) more attractive. Basically, limited liability says an investor can only lose what he/she paid for the stock (invested) in the first place. This clearly makes stock ownership more attractive.
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Based on the table above, the CPI for 2013 is
A) 100. B) 105.1. C) 98.5. D) 5.0%. E) 102.5.
When producers anticipate that the price of their product will increase in the future
A) the supply curve will shift to the right. B) the supply curve will shift to the left. C) the current production will move along on the supply curve. D) they will immediately lobby Congress to adjust prices now.
When a U.S. importer buys 100,000 pairs of pants from a Hong Kong company, this transaction will represent a:
A. Credit on the current account of the U.S. balance of payments B. Debit on the current account of the U.S. balance of payments C. Credit on the financial account of the U.S. balance of payments D. Debit on the financial account of the U.S. balance of payments
In the figure above, the deadweight loss is
A) $4,000 an hour. B) $2,000 an hour. C) $1,000 an hour. D) $5,000 an hour. E) zero.