Generally, If People Begin to Expect a Company to Have

question 154

True/False

Generally, if people begin to expect a company to have higher future profits, the price of the company's stock will begin to decrease.

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Definitions:

Financial Responsibility

Financial responsibility involves managing money in a way that allows an individual or organization to meet their obligations and prepare for future financial needs.

Ex Rights

Period when stock is selling without a recently declared right, normally beginning two business days before the holder-of-record date.

Stock Rights

Options granted to existing shareholders to purchase additional shares in the company at a predetermined price, usually within a short period.

Declared Right

A benefit or privilege announced by a company to its shareholders, such as the right to purchase additional shares at a determined price before the public.