Why is the validity and reliability of financial disclosures of limited importance in the People's Republic of China (PRC)?
A)Chinese investors look for long-term stock price gains, which are not based on fundamental company data.
B)The government owns all of the corporate stock traded in the PRC.
C)Most of the stock purchased in the PRC is held for only a short period of time.
D)Most of the stock is rated by the government of the PRC in terms of its quality.

Question

Quizplus · Accepted Answer

In the PRC, a significant portion of stock trading is speculative, with investors often holding stocks for short periods. This reduces the emphasis on the long-term validity and reliability of financial disclosures.

Why Is the Validity and Reliability of Financial Disclosures of Limited