Use the Graph to Answer the Question

question 53

Essay

Use the graph to answer the question.
- Mike decides to buy shares of companies X and Y, which were initially selling for the same
price. The changes in the value of each stock over a 90-day period are shown in the graph
above. Describe the trend in the value of each stock over the 90-day period.

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Definitions:

Retained Earnings

The portion of a company's profit that is held or retained and saved for future use, reinvestment in the business, or to pay debt, rather than being paid out as dividends.

Additional Paid-In Capital

The excess amount paid by investors over the par value of shares, reflecting the additional capital contributed to a corporation.

Accumulated Comprehensive Income

The total of all net income and other comprehensive income items that have been accumulated over the life of a company.

Net Income

The total profit or loss a company generates from its operations, after subtracting all expenses, taxes, and costs.