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Author Question: Rising stock prices increase investment because (Read 49 times)

madam-professor

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Question 1

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


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

Question 2

Rising stock prices increase investment because


◦ the rising prices increase firm profits and make investment out of retained earnings easier.
◦ firms can raise more money per share of stock sold.
◦ rising stock prices guarantee an increased level of retained earnings.
◦ interest rates are lower.


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Marked as best answer by madam-professor on Apr 19, 2019

welcom1000

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madam-professor

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welcom1000

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