you have just purchased 15 shares of a stock selling at $75 per share. Since tha

Question

you have just purchased 15 shares of a stock selling at $75 per share. Since that time, the company was found to be in violation of several environment laws and has several major lawsuits outstanding. Which of the following statements is most correct?

A.you can't lose your investment based on the actions of the company
B.By owing stock, you have also technically violated the law
C.you could lose one half of your investment plus your proportional share of the legal costs
D.You could lose more than your 1125 investment
E.you could lose up to your 1125 investment

explain plz. i think it's E but i'm not sure

thx

Explanation / Answer

E.you could lose up to your 1125 investment The maximum you can loose is the amount of investment, which is (75x15) if the share prices go down because of actions of the company.

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