Which of the following about stock is true?
A) The stock market provides investors with an opportunity to own a fractional share of the firm's future profits.
B) A new stock issue is often an excellent way for a firm to raise funds for future expansion.
C) Changes in stock prices provide information about what investors think of various business decisions.
D) All of the above are true.

Question

Quizplus · Accepted Answer

All the statements are true: A) Stocks represent ownership in a company and a claim on part of the company's profits. B) Issuing new stock can be a way for companies to raise capital for expansion. C) Stock price changes reflect investor sentiment and expectations about a company's future performance.

Which of the Following About Stock Is True