B. Shareholders’ stock loses value.
When a company’s profits fall, it often leads to a decline in investor confidence, which can cause the stock price to decrease, resulting in a loss of value for shareholders.
Which of the following happens to stock when a company’s profits fall?
A.
Shareholders get stock insurance payments.
B.
Shareholders’ stock loses value.
C.
Shareholders are given more stock.
D.
Shareholders cash in their interest.
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