We Read in Business Publications That Net Income Is Often

question 56

Multiple Choice

We read in business publications that net income is often called the _____.

• A)banker's best friend
• B)bottom line
• C)language of business
• D)core line

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Definitions:

Fundamental Analysis

An approach to evaluating a security that involves examining related economic, financial, and other qualitative and quantitative factors.

Neglected Stocks

Stocks that are under-followed or ignored by analysts and investors, often resulting in undervaluation.

Market Efficiency

A market theory that suggests that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the overall market.

Semistrong-Form Market Efficiency

A theory stating that all publicly available information is already reflected in stock prices, thus making it impossible to achieve consistently higher returns.