If the price of company's stock is expected to fall in the future,then people holding such shares will have an incentive to get rid of them.

Question

Quizplus · Accepted Answer

If the price of a company's stock is expected to fall in the future, the shareholders may have an incentive to sell their shares before the price drops further. This is because they do not want to incur losses and want to maximize their gains. Therefore, the statement is true.

If the Price of Company's Stock Is Expected to Fall