Your dad said that he was curious to know why there is so much fluctuation in the value of common stocks- In 1997 the prospects for Sun Industries became more uncertain and investors began to view it as a more risky investment than they had previously- To compensate for this added risk, investors increased their required rate of return on Sun Industries stock, resulting in a decline in its market value- This explains the factor of

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What is a a stock?

A stock represents an ownership stake in a company as a common shareholder.

Common stocks allow shareholders to vote on company issues, with most companies granting one vote per share.

Some companies also offer stockholders dividend payouts, giving investors a stream of income on top of the market value of the stock.
 


Your dad said that he was curious to know why there is so much fluctuation in the value of common stocks- In 1997 the prospects for Sun Industries became more uncertain and investors began to view it as a more risky investment than they had previously- To compensate for this added risk, investors increased their required rate of return on Sun Industries stock, resulting in a decline in its market value- This explains the factor of






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