If a Stock Is near Its 52-Week Low, That Means

question 126

Multiple Choice

If a stock is near its 52-week low, that means the stock

• A) is trading at its lowest volume for past year.
• B) has a stock price that is near the lowest for the past year.
• C) is reflecting very low sales for the company that issued the stock.
• D) is a high-risk investment.

---

Definitions:

Outstanding Shares

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares.

Equity Method

An accounting technique used to record investments in other companies when significant influence is held but not complete control.

Revenue from Stock Investments

Income earned from the ownership of shares in other companies, including dividends received and gains from sales of these shares.

Investee

A company or entity in which an investor holds a minority stake, not sufficient to exercise control over it.