Share Prices Tend to Move Together If They Are Affected

question 65

Multiple Choice

Share prices tend to move together if they are affected by:

• A)common economic events.
• B)events unrelated to the economy.
• C)company specific events.
• D)idiosyncratic shocks.

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Definitions:

Taxes

Mandatory payments made to the government, taken from individuals' earnings and the profits of businesses, or incorporated into the price of certain products, services, and financial dealings.

Budget Deficit

The financial situation in which a governing body's expenditures exceed its revenues within a given fiscal period, leading to borrowing or debt accumulation.

GDP

GDP (Gross Domestic Product) measures the total monetary value of all finished goods and services produced within a country's borders in a specific time period, often used as an indicator of economic health.

Taxes

Compulsory contributions to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.