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There are actually long-term benefits for Wall Street stockbrokers in a rapidly falling stock market in which most investors are selling and many people are losing a great deal of money. After all, the volume of daily transactions rises dramatically in such a market, and the stockbrokers, who receive a commission on each sale, collect a windfall of commission income.
Which of the following, if true, would most seriously weaken the argument made above?
  • a)
    Some investors whose stocks are affected in a falling market have purchased their stocks on margin—i.e., on credit—and must complete payment at the full purchase price while their stocks are actually declining in value.
  • b)
    Many Wall Street stockbrokers sell not only stocks, but also bonds, money-market funds, and insurance-investments that might actually improve in value during a rapidly falling stock market.
  • c)
    Only ten percent of stock-buying and selling on Wall Street is conducted on behalf of individual investors; ninety percent is conducted on behalf of institutional investors.
  • d)
    After a rapidly falling market, relatively few stockbrokers give up stock-trading and leave Wall Street.
  • e)
    After a rapidly falling market, the volume of trading in the stock market generally declines and remains at a low level for an extended period of time.
Correct answer is option 'E'. Can you explain this answer?
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There are actually long-term benefits for Wall Street stockbrokers in ...
A. This statement suggests that some investors who purchased stocks on credit (margin) are obligated to pay the full purchase price even as the stock's value declines. This indicates that these investors may suffer significant losses, which would likely discourage them from selling their stocks and thus decrease the volume of daily transactions. Therefore, option A weakens the argument by indicating that the volume of transactions may not rise dramatically in a falling market.
B. This statement suggests that many stockbrokers sell other investment products such as bonds, money-market funds, and insurance, which may actually improve in value during a falling stock market. This implies that while stock sales may decrease, there could be an increase in sales of these other investment products. Therefore, option B does not weaken the argument, as it presents an alternative avenue for stockbrokers to earn commission income.
C. This statement provides information about the breakdown of stock-buying and selling on Wall Street. It indicates that only ten percent of the transactions are conducted on behalf of individual investors, while the remaining ninety percent is conducted on behalf of institutional investors. This information is irrelevant to the argument and does not weaken it.
D. This statement suggests that relatively few stockbrokers give up stock trading and leave Wall Street after a rapidly falling market. However, it does not directly address the argument regarding the benefits of falling markets for stockbrokers. Therefore, option D does not weaken the argument.
E. This statement indicates that after a rapidly falling market, the volume of trading in the stock market generally declines and remains at a low level for an extended period of time. This directly contradicts the argument, which claims that the volume of daily transactions rises dramatically in such a market. Option E weakens the argument by indicating that the volume of trading may decrease rather than increase in a falling market.
Based on the analysis above, option E is the statement that most seriously weakens the argument.
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There are actually long-term benefits for Wall Street stockbrokers in a rapidly falling stock market in which most investors are selling and many people are losing a great deal of money. After all, the volume of daily transactions rises dramatically in such a market, and the stockbrokers, who receive a commission on each sale, collect a windfall of commission income.Which of the following, if true, would most seriously weaken the argument made above?a)Some investors whose stocks are affected in a falling market have purchased their stocks on margin—i.e., on credit—and must complete payment at the full purchase price while their stocks are actually declining in value.b)Many Wall Street stockbrokers sell not only stocks, but also bonds, money-market funds, and insurance-investments that might actually improve in value during a rapidly falling stock market.c)Only ten percent of stock-buying and selling on Wall Street is conducted on behalf of individual investors; ninety percent is conducted on behalf of institutional investors.d)After a rapidly falling market, relatively few stockbrokers give up stock-trading and leave Wall Street.e)After a rapidly falling market, the volume of trading in the stock market generally declines and remains at a low level for an extended period of time.Correct answer is option 'E'. Can you explain this answer?
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There are actually long-term benefits for Wall Street stockbrokers in a rapidly falling stock market in which most investors are selling and many people are losing a great deal of money. After all, the volume of daily transactions rises dramatically in such a market, and the stockbrokers, who receive a commission on each sale, collect a windfall of commission income.Which of the following, if true, would most seriously weaken the argument made above?a)Some investors whose stocks are affected in a falling market have purchased their stocks on margin—i.e., on credit—and must complete payment at the full purchase price while their stocks are actually declining in value.b)Many Wall Street stockbrokers sell not only stocks, but also bonds, money-market funds, and insurance-investments that might actually improve in value during a rapidly falling stock market.c)Only ten percent of stock-buying and selling on Wall Street is conducted on behalf of individual investors; ninety percent is conducted on behalf of institutional investors.d)After a rapidly falling market, relatively few stockbrokers give up stock-trading and leave Wall Street.e)After a rapidly falling market, the volume of trading in the stock market generally declines and remains at a low level for an extended period of time.Correct answer is option 'E'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about There are actually long-term benefits for Wall Street stockbrokers in a rapidly falling stock market in which most investors are selling and many people are losing a great deal of money. After all, the volume of daily transactions rises dramatically in such a market, and the stockbrokers, who receive a commission on each sale, collect a windfall of commission income.Which of the following, if true, would most seriously weaken the argument made above?a)Some investors whose stocks are affected in a falling market have purchased their stocks on margin—i.e., on credit—and must complete payment at the full purchase price while their stocks are actually declining in value.b)Many Wall Street stockbrokers sell not only stocks, but also bonds, money-market funds, and insurance-investments that might actually improve in value during a rapidly falling stock market.c)Only ten percent of stock-buying and selling on Wall Street is conducted on behalf of individual investors; ninety percent is conducted on behalf of institutional investors.d)After a rapidly falling market, relatively few stockbrokers give up stock-trading and leave Wall Street.e)After a rapidly falling market, the volume of trading in the stock market generally declines and remains at a low level for an extended period of time.Correct answer is option 'E'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for There are actually long-term benefits for Wall Street stockbrokers in a rapidly falling stock market in which most investors are selling and many people are losing a great deal of money. After all, the volume of daily transactions rises dramatically in such a market, and the stockbrokers, who receive a commission on each sale, collect a windfall of commission income.Which of the following, if true, would most seriously weaken the argument made above?a)Some investors whose stocks are affected in a falling market have purchased their stocks on margin—i.e., on credit—and must complete payment at the full purchase price while their stocks are actually declining in value.b)Many Wall Street stockbrokers sell not only stocks, but also bonds, money-market funds, and insurance-investments that might actually improve in value during a rapidly falling stock market.c)Only ten percent of stock-buying and selling on Wall Street is conducted on behalf of individual investors; ninety percent is conducted on behalf of institutional investors.d)After a rapidly falling market, relatively few stockbrokers give up stock-trading and leave Wall Street.e)After a rapidly falling market, the volume of trading in the stock market generally declines and remains at a low level for an extended period of time.Correct answer is option 'E'. Can you explain this answer?.
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After all, the volume of daily transactions rises dramatically in such a market, and the stockbrokers, who receive a commission on each sale, collect a windfall of commission income.Which of the following, if true, would most seriously weaken the argument made above?a)Some investors whose stocks are affected in a falling market have purchased their stocks on margin—i.e., on credit—and must complete payment at the full purchase price while their stocks are actually declining in value.b)Many Wall Street stockbrokers sell not only stocks, but also bonds, money-market funds, and insurance-investments that might actually improve in value during a rapidly falling stock market.c)Only ten percent of stock-buying and selling on Wall Street is conducted on behalf of individual investors; ninety percent is conducted on behalf of institutional investors.d)After a rapidly falling market, relatively few stockbrokers give up stock-trading and leave Wall Street.e)After a rapidly falling market, the volume of trading in the stock market generally declines and remains at a low level for an extended period of time.Correct answer is option 'E'. 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After all, the volume of daily transactions rises dramatically in such a market, and the stockbrokers, who receive a commission on each sale, collect a windfall of commission income.Which of the following, if true, would most seriously weaken the argument made above?a)Some investors whose stocks are affected in a falling market have purchased their stocks on margin—i.e., on credit—and must complete payment at the full purchase price while their stocks are actually declining in value.b)Many Wall Street stockbrokers sell not only stocks, but also bonds, money-market funds, and insurance-investments that might actually improve in value during a rapidly falling stock market.c)Only ten percent of stock-buying and selling on Wall Street is conducted on behalf of individual investors; ninety percent is conducted on behalf of institutional investors.d)After a rapidly falling market, relatively few stockbrokers give up stock-trading and leave Wall Street.e)After a rapidly falling market, the volume of trading in the stock market generally declines and remains at a low level for an extended period of time.Correct answer is option 'E'. 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After all, the volume of daily transactions rises dramatically in such a market, and the stockbrokers, who receive a commission on each sale, collect a windfall of commission income.Which of the following, if true, would most seriously weaken the argument made above?a)Some investors whose stocks are affected in a falling market have purchased their stocks on margin—i.e., on credit—and must complete payment at the full purchase price while their stocks are actually declining in value.b)Many Wall Street stockbrokers sell not only stocks, but also bonds, money-market funds, and insurance-investments that might actually improve in value during a rapidly falling stock market.c)Only ten percent of stock-buying and selling on Wall Street is conducted on behalf of individual investors; ninety percent is conducted on behalf of institutional investors.d)After a rapidly falling market, relatively few stockbrokers give up stock-trading and leave Wall Street.e)After a rapidly falling market, the volume of trading in the stock market generally declines and remains at a low level for an extended period of time.Correct answer is option 'E'. 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After all, the volume of daily transactions rises dramatically in such a market, and the stockbrokers, who receive a commission on each sale, collect a windfall of commission income.Which of the following, if true, would most seriously weaken the argument made above?a)Some investors whose stocks are affected in a falling market have purchased their stocks on margin—i.e., on credit—and must complete payment at the full purchase price while their stocks are actually declining in value.b)Many Wall Street stockbrokers sell not only stocks, but also bonds, money-market funds, and insurance-investments that might actually improve in value during a rapidly falling stock market.c)Only ten percent of stock-buying and selling on Wall Street is conducted on behalf of individual investors; ninety percent is conducted on behalf of institutional investors.d)After a rapidly falling market, relatively few stockbrokers give up stock-trading and leave Wall Street.e)After a rapidly falling market, the volume of trading in the stock market generally declines and remains at a low level for an extended period of time.Correct answer is option 'E'. 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After all, the volume of daily transactions rises dramatically in such a market, and the stockbrokers, who receive a commission on each sale, collect a windfall of commission income.Which of the following, if true, would most seriously weaken the argument made above?a)Some investors whose stocks are affected in a falling market have purchased their stocks on margin—i.e., on credit—and must complete payment at the full purchase price while their stocks are actually declining in value.b)Many Wall Street stockbrokers sell not only stocks, but also bonds, money-market funds, and insurance-investments that might actually improve in value during a rapidly falling stock market.c)Only ten percent of stock-buying and selling on Wall Street is conducted on behalf of individual investors; ninety percent is conducted on behalf of institutional investors.d)After a rapidly falling market, relatively few stockbrokers give up stock-trading and leave Wall Street.e)After a rapidly falling market, the volume of trading in the stock market generally declines and remains at a low level for an extended period of time.Correct answer is option 'E'. 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