Stocks are financial securdes that represert partial ownership of a flem. Three
ID: 1103943 • Letter: S
Question
Stocks are financial securdes that represert partial ownership of a flem. Three of the most widely followed stock indexes are the Dow Jones Industrial Average, the SAP 500, and the NASDAO Which of the following does not describe the general movements of these three stock indexes? A. Stock prices decined during the 2001 recession. B. Stock prices decreased during the expansion tom late 2001 to late 2007 O C. Stock prices deained during the 2007 recession O D. Stock prices declined afer the dot-com crash of 2000 O E. Stock prices increased during the expansion of the late 1990sExplanation / Answer
Answer: B
A stock market is a place where various company shares are enlisted. It creates value, since market prices of shares on daily basis are shown. It helps investors while taking their investment decisions.
General movement of stock indexes must be in one direction based on a particular economic situation; suppose in recession it is quite sure that stock price decreases and in expansion it increases. Therefore, although it is an expansion but share price decreases can’t be possible.