When the Scott Pearson Company's stock increased in value from $100.00 per share to
$125.00 per share, the company reported to its shareholders that their stocks had increased
in value by 25%. The stock price remained fixed at $125 for a few months, but then it fell
back down to $100.00 per share. At that time, the Scott Pearson Company reported to the
shareholders that the stock had decreased by 20%. Since the price increase and decrease are
exactly the same, should not the percent increase and the percent decrease be equal?
Explain.

Question

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The Answer of When the Scott Pearson Company's stock increased in value from $100.00 per share to
$125.00 per share, the company reported to its shareholders that their stocks had increased
in value by 25%. The stock price remained fixed at $125 for a few months, but then it fell
back down to $100.00 per share. At that time, the Scott Pearson Company reported to the
shareholders that the stock had decreased by 20%. Since the price increase and decrease are
exactly the same, should not the percent increase and the percent decrease be equal?
Explain.

When the Scott Pearson Company's Stock Increased in Value from $100.00