Maria,an employee of a finance company,believes that purchasing the company's stock will always be profitable regardless of the stock's market value.She feels that stock options are long-term incentive plans that make employees part owners of the organization.Which of the following statements contradicts Maria's belief?
A) Stock options are not profitable to employees.
B) A large percentage of top and middle managers avoid stock options.
C) A company does not allow its employees to purchase its own stock.
D) Offering stock options discourages employees from thinking like owners.
E) Stock prices in the market may fall below their purchased value.

Question

Quizplus · Accepted Answer

Just as stock prices can rise, stock prices can also fall. In this case, the fact that stock prices rise and fall contradicts Maria's belief that a company's stock will always be profitable.

Maria,an Employee of a Finance Company,believes That Purchasing the Company's