Question

what is the risk of buying stock in a corporation?
if a company does not do well, you risk losing your investment.
if the government cannot repay its loans, you will lose your money.
if your bank declares bankruptcy, you have no liquid assets.
if you do not play the market regularly, you will not make money.

Explanation:

• For the option "If a company does not do well, you risk losing your investment": When you buy stock in a corporation, the value of the stock is tied to the company's performance. If the company performs poorly (e.g., low profits, bad management, market competition issues), the stock price can drop, and investors may lose the money they invested as the stock becomes less valuable or even worthless.
• For the option "If the government cannot repay its loans, you will lose your money": This is related to government bonds or government debt, not corporate stocks. So this is not a risk of buying corporate stock.
• For the option "If your bank declares bankruptcy, you have no liquid assets": This is a risk related to bank deposits or assets held in the bank, not directly related to buying corporate stock.
• For the option "If you do not play the market regularly, you will not make money": Making money from stocks is not solely dependent on how often you trade. Long - term investors can also make money through the growth of the company over time, and this statement misrepresents the nature of stock investment risk.

Answer:

A. If a company does not do well, you risk losing your investment.