Answered

Get detailed and reliable answers to your questions with IDNLearn.com. Our experts provide prompt and accurate answers to help you make informed decisions on any topic.

Which of the following is called a stock assumption?

A. When a client assumes the agent will be investing in stocks and bonds only for the client's benefit.
B. When one insurer invests in the stock of a client's company.
C. When one insurer insures another similar insurance company.
D. When an agent invests in stocks and bonds for his/her own benefit.

Sagot :

GinnyAnsweridn

Final answer:

Stock assumption involves beliefs tied to stock-related actions, emphasizing the importance of acting in the client's best interests and diversifying investments to manage risks.


Explanation:

Stock assumption refers to the belief that certain actions or investments related to stocks will be made for specific purposes. In the context of fiduciary relationships, such as with a full-service stockbroker, it is crucial for the agent to act in the client's best interests when managing investments. Diversification is a key strategy to mitigate risks associated with investing in individual firms and is commonly recommended to spread investments across a variety of companies.


Learn more about Stock assumption here:

https://brainly.com/question/43881144


We appreciate your contributions to this forum. Don't forget to check back for the latest answers. Keep asking, answering, and sharing useful information. Thank you for visiting IDNLearn.com. We’re here to provide dependable answers, so visit us again soon.