O-LevelCommerceFinance7100/12 · Oct/Nov 2017 · Q391 Mark
Lucy is thinking of buying some ordinary shares in CC Ltd. Which risk does she need to consider when deciding whether or not to buy these shares?
AIf CC Ltd fails, Lucy might have to sell her house to pay the company's debts.
BIf CC Ltd was taken over by another company, Lucy would receive no money for her shares.
CThe value of her shares can go down according to their price on the stock market.
DUnlike preference shares, ordinary shares do not normally pay out dividends.
✓ Correct answer
C: The value of her shares can go down according to their price on the stock market.
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