The Estimated Value of a Company Is $18 Million

question 32

Multiple Choice

The estimated value of a company is $18 million.The company has 2 million shares outstanding at a market price of $10 per share.You already own 1,000 shares of the stock.Should you buy,sell or hold the stock?

• A)You should buy more shares of the stock.
• B)You should hold the stock for now.
• C)You should sell the stock.
• D)There is not enough information to make a decision.

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Definitions:

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Malaise

A general feeling of discomfort, illness, or uneasiness whose exact cause is difficult to identify, often signaling the onset of an infection or other disease.

AIDS

Acquired Immunodeficiency Syndrome, a chronic, potentially life-threatening condition caused by the human immunodeficiency virus (HIV).