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Author Question: Falling stock prices decrease investment because (Read 7 times)

Hungry!

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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.


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Marked as best answer by Hungry! on Apr 19, 2019

adammoses97

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Hungry!

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


kilada

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Reply 3 on: Yesterday
Excellent

 

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