Which of the Following Factors Does Not Affect the Initial

question 116

Multiple Choice

Which of the following factors does not affect the initial market price of a share?

• A)the company's anticipated future profit
• B)the legal value of the share
• C)the current state of the economy
• D)the expected dividend rate per share

---

Definitions:

Items Reported

Specific financial data points or transaction details disclosed in a company’s financial statements.

Accounting

Accounting is the systematic process of recording, measuring, and communicating financial information about an entity, facilitating decision making and financial management.

Credit Balance

The amount of money a business owes to its creditors, represented as a liability on the balance sheet.

Gain on Sale of Land

The financial profit earned from selling land for more than its purchase cost.