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If Maria does buy the stock before the sale of Big Bud's is publicly announced, what is most likely to happen to the price of the stock?

1) The price of the stock will go up
2) The price of the stock will go down
3) The price of the stock will remain the same
4) Cannot be determined

User VDP
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1 Answer

6 votes

Final answer:

If Maria buys the stock before the sale of Big Bud's is publicly announced, the stock price is most likely to go up, as positive news typically increases investor demand for a stock. The correct option is 1.

Step-by-step explanation:

If Maria buys the stock before the sale of Big Bud's is publicly announced, the most likely scenario is that the price of the stock will go up. This is due to the nature of the stock market, where the price of a stock is influenced by supply and demand, as well as investor sentiment.

If the sale is viewed positively and is expected to have a beneficial impact on the company's future earnings, demand for the stock may increase, leading to a rise in its price. In contrast, if the market perceives the sale negatively, it could have the opposite effect.

However, without knowing market perception of the sale, it's challenging to determine this with certainty. The correct option is 1.

User Andykiteman
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