Which of the following statements about the stock market is true?
A. People who want to buy shares of stock in an established company will generally contact a representative of a venture capital firm.
B. Diversifying by buying shares of stock in many different companies can eliminate the risk taken by the stock investor.
C. Some investors diversify by investing in a group of many different stocks, such as those in the S&P 500 Index.
D. Government regulation ensures that the stock market will go up each year, even if there are occasional declines in stock values.
Answer: C
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