Question

A government report indicated that the use of Pax's aspirin-free painkiller resulted in 100 cases of stomach poisoning. A large number of Pax's stockholders are likely to:

A) Buy more Pax stock
B) Sell their Pax stock
C) Ignore the report
D) Demand higher dividends

Answer 1

Based on the government report indicating stomach poisoning from Pax's aspirin-free painkiller, a large number of stockholders are likely to B) sell their Pax stock.

Step-by-step explanation:

Based on the information provided in the government report, it is likely that a large number of Pax's stockholders will Sell their Pax stock. The report indicating that the aspirin-free painkiller resulted in 100 cases of stomach poisoning suggests that the product may have negative implications for Pax's reputation and future sales. As a result, stockholders may choose to sell their shares to minimize potential financial losses.