If the Price of Company's Stock Is Expected to Fall

question 31

True/False

If the price of company's stock is expected to fall in the future,then people holding such shares will have an incentive to get rid of them.

---

Definitions:

Balance Sheet Method

A financial accounting strategy for valuing assets or determining net worth by comparing what is owned to what is owed.

Holdback Money

Funds retained by one party in a transaction as security or leverage until certain conditions are met.

Tax Liabilities

Financial obligations imposed by governments that are required to be paid, such as income tax, corporate tax, and sales tax.

Escrow Account

A financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction.