In the most recent year,two different companies generated the same earnings per share.The stocks of these two companies should trade at the same price.

Question

Quizplus · Accepted Answer

The price of a stock is not only based on the earnings per share but also on several other factors, such as market demand, growth potential, industry trends, company management, etc. Hence, even if two companies have generated the same earnings per share, their stock prices may vary depending on these other factors.

In the Most Recent Year,two Different Companies Generated the Same