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- Q1How does buying stocks follow the laws of supply and demand?Buyers willbuy more at higer prices and sell at lowr prices.Sellers will sell more at lower prices.Buyers will buy more at lower prices and sell at higher prices.30s113.31.C.17.A
- Q2What is the difference between a future and an option?future contract is not for certain and option contract is optional.future contract requires an investor to buy or sell on a certain date. An option contract gives an investor a choice.future contacts have options as when to buy and sell and options contracts are sold in the future.30s113.31.C.17.A
- Q3Why do the reasons that people buy bonds compare to the reasons that they buy stock?bonds are generally bought for interest income and stocks for capital gains.stocks are a lot less risky than bonds but pay out lessbonds pay a bigger return than stocks will.30s113.31.C.17.A