If the stock of a listed firm decreases by 50 percent, what does it mean to the shareholders?
A)Their ownership of the firm will decrease by 50 percent.
B)Total value of their holdings decreases by 50 percent.
C)The debt of the firm decreases by 50 percent.
D)nothing

Question

Quizplus · Accepted Answer

If the stock of a listed firm decreases by 50 percent, it means the total value of the shareholders' holdings in the company has decreased by 50 percent. However, their ownership percentage and the debt of the firm are not affected by the stock decrease.

If the Stock of a Listed Firm Decreases by 50