THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Companies issue shares to raise money from investors who tend to invest their money. This money is then used by companies for the development and growth of their businesses.
Detailed explanation-2: -The prevention of a takeover is another reason a corporation might be concerned with its stock price. When a company’s stock price falls, the likelihood of a takeover increases, simply because its market value is cheaper. Shares in publicly traded companies are typically owned by a huge number of investors.
Detailed explanation-3: -Unfortunately, when a stock’s price falls to zero, a shareholder’s holdings become worthless. Yet, even before a stock reaches the bottom, major stock exchanges create thresholds that delist shares once they fall below specific price values.
Detailed explanation-4: -Market Value: The price at which shares of stock can be bought and sold is called the market value.