Question

QUESTION 6/10

What might be one reason why a stock becomes more valuable over time?
A. The industry is growing.
C. There is a lot of demand for the product.
B. The company is well-managed.
D. All of the above.

Answer 1

A stock may become more valuable over time if the industry is growing, there is high demand for the product, and the company is well-managed. All of these factors can contribute to improved financial performance and higher stock valuations.

Step-by-step explanation:

One reason why a stock may become more valuable over time includes the growth of the industry in which the company operates. As the industry expands, the company may have increased opportunities for revenue and profit. Another key factor is demand for the product that the company offers; high demand can drive up sales and, in turn, increase the company's value. Additionally, good management plays a crucial role. A well-managed company is typically more efficient, innovative, and responsive to market changes, which can lead to better financial performance and higher stock valuations.

Therefore, the correct answer is D. All of the above.

Answer 2

A stock may become more valuable due to industry growth, high demand for the product, and good management.

Step-by-step explanation:

The correct answer to this question is D. All of the above. There are several factors that can contribute to a stock becoming more valuable over time. One reason is that the industry the company operates in is growing, which can lead to increased revenues and profitability. Another reason is that there is a lot of demand for the product or service the company offers, which can drive up the stock price. Lastly, if the company is well-managed, it can be more likely to achieve consistent growth and generate higher returns for investors.

Learn more about Factors that contribute to a stock becoming more valuable