Which of the Following Investment Choices Is Least Risky
57 Similar to FINRAs suitability rule 58 a broker-dealer could violate the reasonable basis portion of Reg BIs Care Obligation by not fully understanding the recommended security or investment strategy even if. It can also be risky if you try to speculate on high-growth stocks.
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Too many uncertainties surrounding the companys execution make LCID stock a risky investment March 23 2022 By Sakshi Agarwalla Mar 24 2022 705 am EDT March 23 2022 Source.
. Investing is risky is when investors buy stocks they havent fully researched and therefore dont understand. It also requires a reasonable basis to believe that the recommendation could be in the best interest of at least some retail customers based on that understanding. A valuation-led investor might for example seek to identify a catalyst that will realise the mispricing they have identified.
The foundation of the investment rationale is about the valuation of the business but they are also attempting to. Few things in investment are binary and most investment approaches will sit somewhere on the spectrum between valuation-led and price-led.
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