SIE Exam Practice Question 430

Correct Answer: B

Explanation:

B: A defining feature of a corporation is that it offers limited liability to its investors, meaning that investors are held liable for only the amount of money they invest in the company. This means that investors' other assets are not at risk for the company's debts; nor are investors personally liable for any lawsuits that might be brought against the company. The most they can ever lose by the purchase of a company's stock is its purchase price.