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JAMB Commerce 2001 Question 34

Question 34

Stock Exchange

The main factors that determine the value of a stock on the Stock Exchange are dividend and

  1. A.the psychology of the market
  2. B.capital gain
  3. C.capital appreciation
  4. D.warrant payment.
Show the answer and explanation

Answer: C (capital appreciation)

Explanation

Investors value a stock by the dividends it pays and by how much its price is expected to rise (capital appreciation).