When the Scott Pearson Company's Stock Increased in Value from $100.00

question 119

Essay

When the Scott Pearson Company's stock increased in value from $100.00 per share to
$125.00 per share, the company reported to its shareholders that their stocks had increased
in value by 25%. The stock price remained fixed at $125 for a few months, but then it fell
back down to $100.00 per share. At that time, the Scott Pearson Company reported to the
shareholders that the stock had decreased by 20%. Since the price increase and decrease are
exactly the same, should not the percent increase and the percent decrease be equal?
Explain.

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Definitions:

Key Employees

Individuals who have a significant impact on a company's performance, often holding positions that are crucial for the business's operations and strategic goals.

Insignificant Contributions

Inputs or efforts that have minimal impact or importance in the context of a larger goal or project.

Self-Employed

A person who works for themselves rather than an employer and is responsible for their own business operations.

Employment Insurance

A government program providing financial benefits to individuals temporarily unemployed through no fault of their own.