Question 34
Business FinanceWhen a firm speaks of stock appreciation, it refers to
- A.changes in the value of its stock resulting from price movements
- B.increase in the price of its shares quoted on the stock exchange
- C.an unexpected increase in the demand for its stocks
- 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.