Suppose Bob decides to buy 100 shares of RoboTroid stock. Which of the following statements are correct? Check all that apply.

(A) Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Bob's shares to decline.

(B) RoboTroid earns revenue when Bob purchases 100 shares, even if he purchases them from an existing shareholder.

(C) The Dow Jones Industrial Average is an example of a stock exchange where he can purchase RoboTroid stock.

Question

Business

Ruby Sloan

28 October, 11:01

Suppose Bob decides to buy 100 shares of RoboTroid stock. Which of the following statements are correct? Check all that apply.

(A) Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Bob's shares to decline.

(B) RoboTroid earns revenue when Bob purchases 100 shares, even if he purchases them from an existing shareholder.

(C) The Dow Jones Industrial Average is an example of a stock exchange where he can purchase RoboTroid stock.

+3

Answers (1)

Know the Answer?

Ean Sanford · Answer 1

Letter A is correct!

Explanation:

When you buy shares in a publicly traded company, you own a fraction of a portion of that company, so the more shares, the larger your share of an organization. That is, you have profit sharing and there are also companies that pay dividends in some periods to shareholders. However, there are also risks that the investor assumes when acquiring shares, because the market dynamics will be responsible for assuming the gains and losses. In the event of an economic downturn affecting the company in question, the shareholder would also have losses linked to this. fact.