A High Demand for a Company's Stock Is an Indication

question 105

Multiple Choice

A high demand for a company's stock is an indication that

• A)the company is in need of funds.
• B)the company has recently sold a large quantity of bonds.
• C)people are optimistic about the company's future.
• D)people are pessimistic about the company's future.

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Definitions:

Cash Dividends

A portion of a company's earnings that is paid to shareholders, typically in the form of cash.

Net Cash

The total amount of cash and cash equivalents minus any liabilities or financial obligations a company has at any point in time.

Operating Activities

Transactions and other events that affect the net income of a company, involving the primary revenue-generating activities such as sales and expense payments.

Cash Dividend

A payment made by a company out of its profits to its shareholders, usually in cash.