When a Stock Price Rises to Its Par Value, It

question 97

True/False

When a stock price rises to its par value, it will then be repurchased by the corporation.

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Definitions:

Expected Return

The weighted average of all possible returns for an investment, considering the probabilities of each outcome.

Annual Dividend

The total dividend payment a company makes to its shareholders in a year, often derived from its net income.

Growth Rate

The rate at which a company's earnings, revenue, or other financial metric increases on a year-to-year basis.

Zero Growth Stock

Zero growth stock refers to shares in a company that is expected to experience neither growth nor decline in its dividends or earnings in the foreseeable future.