In making stock buy or sell recommendations, most stock analysts use microeconomics:
A) to understand markets and predict changes.
B) to evaluate the merits of public policies.
C) to make managerial and personal decisions.
D) to understand marginal changes in the macroeconomy.

Question

Quizplus · Accepted Answer

Stock analysts use microeconomics to understand markets and predict changes in order to make buy or sell recommendations for stocks. Microeconomics is the study of individual markets, firms, and consumers, which provides analysts with information on the specific factors affecting a particular stock's performance. Understanding these factors enables analysts to make informed recommendations based on the stock's potential for growth or decline.

In Making Stock Buy or Sell Recommendations, Most Stock Analysts