Indy owns 100 shares of stock in Pet Mart Corporation that he purchased for $20 per share. Every year he has received, from company proﬁts, $1 for each share he owns. Indy should necessarily sell
His stock if

Question

Quizplus · Accepted Answer

Indy should sell his stock if he expects the sum of future capital gains and dividends to be negative. This means that the potential loss from holding onto the stock outweighs the potential gain. The other options (A, C, and D) do not necessarily require Indy to sell his stock as they do not directly indicate a negative outlook on the future performance of the stock.

Indy Owns 100 Shares of Stock in Pet Mart Corporation