A dollar increase in operating earnings appears to have the same impact on stock price as a dollar increase in capital gains.

Question

Quizplus · Accepted Answer

Operating earnings reflect the core business performance and are considered more sustainable, whereas capital gains can be more volatile and less indicative of the company's ongoing profitability. Therefore, investors often value a dollar increase in operating earnings more than a dollar increase in capital gains.

A Dollar Increase in Operating Earnings Appears to Have the Same