When Evaluating a Stock as a Possible Investment,one Must Consider

question 139

Multiple Choice

When evaluating a stock as a possible investment,one must consider

• A)the current market price.
• B)the expected capital gain.
• C)the expected dividend income.
• D)one's investment goals.
• E)all of the above

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Definitions:

Accumulated Profit

The total amount of net income retained in a company over its entire history, not distributed as dividends.

Liquidation

The process of converting assets into cash or cash equivalents by selling them.

Dividends

Awards made by a business to its shareholders, usually resulting from the disbursement of profits.

Voting Rights

The entitlement of shareholders to vote on corporate matters and decisions during stockholders' meetings.