A Stock That Typically Sells for Less Than $1 Per

question 142

Multiple Choice

A stock that typically sells for less than $1 per share is called a(n) _______ stock.

• A) blue chip
• B) income
• C) micro cap
• D) midcap
• E) penny

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Definitions:

Price Elasticity

A measure reflecting how demand for a particular good shifts with adjustments in its pricing.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers at those prices, typically downward sloping.

Total Revenue

The total income a firm receives from the sale of its products, calculated by multiplying price by quantity sold.

Price Falls

A situation where the market price of a good or service decreases due to factors such as increased supply or decreased demand.