What is a potential advantage of investing in penny stocks? Option: High liquidity and ease of trading, Potential for rapid growth and high returns, Guaranteed high returns, Low risk of financial loss

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What is a potential advantage of investing in penny stocks?

High liquidity and ease of trading

Potential for rapid growth and high returns

Guaranteed high returns

Low risk of financial loss

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What characteristic of small-cap stocks makes them potentially suitable for investors seeking high returns?

Government backing

Low volatility

Fixed dividends

Potential for high growth

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What is a potential risk associated with the low trading volume of penny stocks?

Difficulty in finding buyers when selling

Increased regulatory scrutiny

Guaranteed high returns

Lower brokerage fees

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Which of the following is NOT a reason to consider investing in small-cap stocks?

Access to stocks less influenced by large financial institutions

Guaranteed high returns with minimal risk

Opportunity to buy stocks at potentially lower prices

Potential to benefit from the growth of smaller companies

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What is a significant risk associated with investing in growth stocks?

"They are primarily issued by established companies"

"They offer limited potential for capital appreciation"

"They are highly susceptible to market fluctuations"

"They tend to have low trading volumes"

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What is the primary advantage of investing in Small Cap mutual funds?

Low risk

High returns

Tax benefits

Guaranteed returns