Peter Lynch Identified a Number of Attributes of Firms That

question 111

Multiple Choice

Peter Lynch identified a number of attributes of firms that may result in favorable stock market performances,including

• A) Products that are faddish, people like change.
• B) Firms that have competitive advantages over their rivals.
• C) Firms that can benefit from cost reductions.
• D) Choices b and c only
• E) All of the above

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Definitions:

Premium

An additional amount over the normal cost, or the portion of insurance payments above the cost of the insured risk.

Discount

A reduction applied to the usual cost of goods or services, or in finance, an amount deducted from the face value of a bill of exchange or loan.

Par

The nominal or face value of a bond, stock, or coupon as indicated on a certificate or instrument.

Stockholders' Equity

The ownership stake of shareholders in a corporation's assets, remaining after all liabilities have been subtracted.