JAMB Commerce 1997 Question 34

Question 34

Business Finance

When a firm speaks of stock appreciation, it refers to

  1. A.changes in the value of its stock resulting from price movements
  2. B.increase in the price of its shares quoted on the stock exchange
  3. C.an unexpected increase in the demand for its stocks
  4. D.the value of its stocks in the stock exchange.
Show the answer and explanation

Answer: A (changes in the value of its stock resulting from price movements)

Explanation

In business, 'stock' here means the goods the firm holds. Stock appreciation is the increase in the value of that stock caused by price changes while it is held.