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.