Share Prices Go Up When There Is Positive Information About

question 24

True/False

Share prices go up when there is positive information about a company,and go down when there is negative information about the company.

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Definitions:

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if a stock is under or overvalued.

Market Value Per Share

The current price at which a single share of a company's stock is bought or sold in the financial markets.

Earnings Per Share

Earnings Per Share (EPS) is a measure used to indicate the profitability of a company, calculated as the company's net income divided by the number of outstanding shares of its common stock.

Par Preferred Stock

The value assigned to preferred stock for accounting purposes, not necessarily its market value.