Why Is It Difficult to Determine the Market Price of a Private

question 44

Multiple Choice

Why is it difficult to determine the market price of a private corporation's shares at any point in time?

• A) It is difficult to obtain enough information to accurately value such a company.
• B) The price of its shares is fixed by the owners.
• C) It has a limited number of owners.
• D) There is no organized market for its shares.

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Definitions:

Piaget

A Swiss psychologist known for his theory of cognitive development which outlines how children's intellectual abilities evolve as they grow.

Concrete Operations

A stage in Piaget's theory of cognitive development, typically occurring between 7 and 11 years of age, during which children gain a better understanding of mental operations and can think logically about concrete events.

Tangible Objects

Physical items that can be seen, touched, and occupied in space, as opposed to abstract concepts or digital items.

Cognitive Development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding.