FINRA General Securities Representative SIE Question # 29 Topic 4 Discussion

Technology stocks are considered high-risk investments due to their volatility and sensitivity to economic cycles, regulatory changes, and technological advancements. While they may offer significant growth potential, they carry greater risk than blue chip stocks, corporate bonds, or government bonds.

C is correctbecause technology stocks are subject to high volatility and risk.

Ais incorrect because blue chip stocks are generally stable and lower-risk.

Bis incorrect because corporate bonds carry moderate risk, depending on the issuer’s creditworthiness.

Dis incorrect because government bonds are considered low-risk due to the backing of the issuing government.