The practice of using delivery vs. payment (DVP) procedures when buying/selling an investment protects an investor from:

Using delivery vs. payment (DVP) procedures when buying or selling an investment is a critical practice in securing transactions. This method ensures that the transfer of securities and the corresponding payment occur simultaneously, minimizing the risk of one party defaulting on the transaction after one side has fulfilled its obligations.

By employing DVP, an investor is effectively safeguarded against the potential for fraud, as the simultaneous exchange reduces the opportunity for one party to receive securities without making payment or vice versa. This mechanism acts as a protective measure, ensuring that both participants in the transaction fulfill their part of the agreement before the trade is considered complete. The structure of DVP directly addresses concerns around trust and performance, reinforcing the integrity of the transaction process through an established system.

In contrast, while other options may address different aspects of investment risks or ethical concerns, they do not specifically correlate with the protective function of DVP procedures against fraudulent activities involved in securities trading.