What Does a Low P/E for a Stock Indicate

question 114

Multiple Choice

What does a low P/E for a stock indicate?

• A)People may expect earnings to fall in the future perhaps because the firm will be faced with increased competition.
• B)Its dividends have been low so that no one is willing to pay very much for it.
• C)The corporation is possibly overvalued.
• D)It is a good time for buying the company's stock.

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Definitions:

Lymphangiosarcoma

A rare and aggressive form of cancer that develops from the lymphatic system, often associated with chronic lymphedema.

Combining Form

A linguistic element used in the construction of medical and scientific terminology that generally consists of a root and a vowel to ease pronunciation when combined with another form.

Cancer

A broad term for a large group of diseases characterized by the uncontrolled growth and spread of abnormal cells in the body.

Abbreviation

The act of shortening a word or phrase to create a simpler or more compact form, usually employing the initial letters.