If the CEO of a company were to pass away, what do you think would happen to price of the stock?
A) It would decrease because of the perceived increased risk due of lack of near-term leadership.
B) It would increase because of the perceived increased risk due of lack of near-term leadership.
C) It would decrease because of the perceived decreased risk due of lack of near-term leadership.
D) It would increase because of the perceived decreased risk due of lack of near-term leadership.

Question

Quizplus · Accepted Answer

The sudden death of a CEO could create uncertainty and a sense of increased risk among investors. As a result, the stock price may fall due to concerns about the future direction and leadership of the company. There could also be a potential impact on the company's operations and financial performance, which could further weigh on the stock price.

If the CEO of a Company Were to Pass Away