Which of the following is NOT a function of the investment industry?

In the context of the functions of the investment industry, preventing risks from market fluctuations is not typically classified as a direct function. While investment firms and practitioners utilize various risk management strategies to mitigate risk exposure for clients and portfolios, the primary focus of the investment industry lies in facilitating capital allocation, investment management, and providing market access rather than explicitly preventing risks from occurring.

The investment industry primarily supports activities such as connecting savers with borrowers, as they create platforms for investors to invest in businesses or debt instruments, thereby facilitating the flow of capital. Additionally, they play a crucial role in providing loans to large corporations, which is an essential service for corporate financing. Entrepreneurs often benefit from the investment industry through venture capital and other forms of funding to develop their business ideas, but this does not mean that the industry solely focuses on preventing risks.

Therefore, option C is correct because while risk management is an integral part of investment strategies, the industry itself does not function primarily to prevent market fluctuations; rather, it operates around investment opportunities and financing.