If a company buys the stocks of companies in a related industry, they are most likely investing because they
A) have excess cash.
B) are trying to meet a strategic goal.
C) are trying to generate earnings.
D) have speculative reasons.

Question

Quizplus · Accepted Answer

If a company buys stocks of companies in a related industry, they are most likely investing to meet a strategic goal. This may be to expand their market share or diversify their portfolio. It is less likely that they have excess cash or speculative motives, although generating earnings could be a secondary benefit of such investments.

If a Company Buys the Stocks of Companies in a Related