Why is speculating in derivatives, futures contracts and options not appropriate for the typical, long-term investor?
What will be an ideal response?
Answer: These are highly speculative securities that are not appropriate for the typical investor using their important money to reach their long-term goals. These securities require sophisticated knowledge and research not typically found in the average investor. Because they derive their value from other assets, these securities do not generate a return unless the underlying assets behave in a certain manner.
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Common purpose, one of the four common elements of organizations proposed by Schein,
What will be an ideal response?
What was the significance of the controversy in 1977 over the appropriate accounting principles to be used by oil- and gas-producing companies?
A. Several major lawsuits resulted. B. Companies refused to follow the SEC's dictates. C. Partners of a major accounting firm were indicted on criminal charges. D. The SEC overruled the FASB on its handling of this matter.