The Single Most Important Piece of Information About a Stock

question 51

Multiple Choice

The single most important piece of information about a stock is its

• A)term.
• B)dividend.
• C)daily volume.
• D)price.

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Definitions:

External Growth

Expansion of a business through acquiring or merging with other companies, as opposed to internal growth through increasing sales, product lines, or efficiencies.

Diversification

In finance, selecting a portfolio of different (diverse) investments to limit the overall risk borne by the investor.

Economies of Scale

Cost advantages that a business can achieve due to expansion and increased production volume, leading to lower per-unit costs.

Unfriendly Merger

A takeover or merger which is not supported or welcomed by the target company's management and board of directors.