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Author Question: Falling stock prices decrease investment because (Read 20 times)

Hungry!

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on: Apr 19, 2019

Question 1

If you own a share of stock in a company and the risk associated with its business falls, you would expect


◦ a capital gain.
◦ a capital loss.
◦ a higher dividend.
◦ a bubble.

Question 2

Falling stock prices decrease investment because


◦ the falling prices decrease firm profits and makes investment out of retained earnings harder.
◦ firms can raise less money per share of stock sold.
◦ falling stock prices guarantee a decreased level of retained earnings.
◦ interest rates are lower.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by Hungry! on Apr 19, 2019

adammoses97

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Hungry!

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Reply 2 on: Apr 19, 2019
Great answer, keep it coming :)

FergA

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Reply 3 on: Yesterday
Gracias!

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