In the Long Run, the Market Price Tends to Adjust

question 261

True/False

In the long run, the market price tends to adjust toward the equilibrium point.

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Definitions:

Employee Stock Options

A form of compensation provided to employees, giving them the right to buy the company's stock at a set price after a certain period.

Ownership Stake

The percentage of a company's shares owned by an individual or entity, representing a portion of the company's equity.

Align

To adjust or arrange something in a straight line or in correct relative positions.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interests and usually voting rights in the company.