Solved

Why Is the Share Price of a Company an Indication

Question 49

Multiple Choice

Why is the share price of a company an indication of the performance of that company's senior managers?


A) Larger companies tend to be better run and so have higher share prices.
B) Investors who can see that a company is well-run will hold onto their shares, even if the company faces temporary setbacks, since they know that the share price will likely rise again.
C) Well-run companies are invariably highly profitable, which leads to a higher share price.
D) In general, people want to invest in a well-managed corporation, which will drive up the price of its shares.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents