If people become less optimistic about the future earnings of Hyde Park Records Corporation, the price of stock in the company will fall.

Question

Quizplus · Accepted Answer

The future earnings potential of a company is a major factor in determining its stock price. If investors believe that the company's earnings will be lower than expected, they may sell the stock, causing its price to fall. Therefore, if people become less optimistic about the future earnings of Hyde Park Records Corporation, the price of its stock will likely fall as well.

If People Become Less Optimistic About the Future Earnings of Hyde