It is common for shareholders to initiate litigation when
A)the company reports record profits,but does not declare dividends.
B)there's a sudden drop in stock price.
C)the company introduces new products that are found to be harmful to the environment.
D)rumors about the company appear in the media that,if true,would result in slower growth in future profits.

Question

Quizplus · Accepted Answer

Shareholders may initiate litigation if there is a sudden drop in stock price, as it may indicate the company did not disclose important information or engaged in fraudulent activities. However, the other options do not necessarily warrant litigation from shareholders.

It Is Common for Shareholders to Initiate Litigation When