Moshe Purchased a Stock for $30 Last Year

question 77

Multiple Choice

Moshe purchased a stock for $30 last year. He found out today that he had a -100 percent return on his investment. Which of the following must be true?

• A) The stock is worth $30 today.
• B) The stock is worth $0 today.
• C) The stock paid no dividends during the year.
• D) Both B and C must be true.

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Definitions:

Equilibrium Quantity

The quantity of goods or services at which demand equals supply, and there is no tendency for the market price to change.

Equilibrium Price

The price at which the quantity of a good demanded equals the quantity supplied, leading to a stable market condition.

Demand

The amount of a product or service that buyers are ready and capable of buying at different price points.

Public Utilities

Companies that provide essential services such as water, electricity, and telecommunications to the public, often under government regulation.