The point of holding many companies is that if one goes under from poor management, you:
AOwe more money
BPay a penalty
CKeep the others
DLose everything
Answer & Solution
Correct answer: C. Keep the others
1. Money sits in several places.
2. Only part of the portfolio is hit.
3. You keep the others.
_Source: OpenStax Principles of Finance 2e, Chapter 15, How to Think about Investing._
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