If the Price of a Depleting Resource Does Not Rise

question 218

Multiple Choice

If the price of a depleting resource does not rise as anticipated, it may be because:

• A)​new reserves of the resource were discovered.
• B)​new methods of mining or refining were developed. 
• C)​price controls were passed by law. 
• D)​All of the above are correct.

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Definitions:

Market Price

The immediate price at which an asset or service is open for buying or selling.

Shares Outstanding

The total number of a company's shares of stock that are owned by shareholders, including those held by institutional investors and company officers.

Liquidating Dividend

A type of dividend paid by a company when it is in the process of shutting down, representing the return of capital to shareholders from the liquidation of assets.

Dividend Policy

Guidelines a company follows to decide how much it will pay out to shareholders in dividends, determined by factors like current profitability and future investment plans.