Which of the Following Is a Better Indicator of an Increase

question 86

Essay

Which of the following is a better indicator of an increase in the nation's productive capacity, gross investment or net investment? Defend your answer.

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Definitions:

Stock Splits

An action by a company to divide its existing shares into multiple ones to boost the stock's liquidity, though the company's overall market value stays the same.

Earnings Per Share

A company's net profit divided by the number of its outstanding shares, indicating the amount of money each share would receive if all profits were distributed.

Share Repurchases

The act of a company buying back its own shares from the marketplace, which can increase the value of remaining shares.

Reverse Stock Split

A corporate action in which a company reduces the number of its outstanding shares to increase the market value per share, consolidating them at a specified ratio (e.g., 1 for 10).