______ seek firms with a share price that reflects sound economic fundamentals, while ______ seek firms based on whether the share price will rise.

Question

Quizplus · Accepted Answer

Investors tend to look for firms with strong economic fundamentals, including solid financials and good management, and are more focused on the long-term growth potential of the company. Speculators, on the other hand, are more interested in short-term gains and may not be as concerned with the underlying fundamentals of the company. They may rely more on market trends and technical analysis to make investment decisions.

______ Seek Firms with a Share Price That Reflects Sound