When Analyzing Stocks,the Major Variable of Interest to a Majority

question 58

Multiple Choice

When analyzing stocks,the major variable of interest to a majority of investors is:

• A)sales.
• B)profit margins.
• C)dividend yield.
• D)earnings per share.

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Definitions:

Federal Law

Legislation enacted by the national government of a country, applicable across the entire country.

Premium on Stock

The amount by which the sale price of a stock exceeds its par value, often occurring when investors view the company as having strong future prospects.

Par Value

Par value is a nominal or face value assigned to a share of stock or bond when it is issued, which has little significance today but was historically the legal capital of the share.

Capital Gain

The profit earned from the sale of an asset or investment exceeding its purchase price.