Changes in stock prices occur because investors change the rates of return they require to invest in stocks and/or the expectations about the cash flows associated with stocks change.
Answer the following statement true (T) or false (F)
True
If investors demand higher (lower) returns to invest in stocks, then prices should fall (increase). If investors expect their investments to generate lower (higher) future cash flows, then prices should also fall (increase). See 7-4: Changes in Stock Prices
You might also like to view...
____ is a basic tool available with the Oracle server that allows a user to enter SQL and PL/SQL directly to the database server for processing.
A. OTN B. Procedure Builder C. SQL*Plus D. TOAD
Which of the following is not a significant activity during the systems implementation phase?
A. computer resource acquisition B. system maintenance C. software and hardware installation D. site preparation
NAFTA is the New American Foreign Trade Amendment, which allows for balanced trade with the European Union (EU).
Answer the following statement true (T) or false (F)
The right to sell 100 shares of a specified stock at a specified price by a specified expiration date is called a
A) call option. B) put option. C) divestment option. D) sell option.