Comprehensionmedium · Past Paper
The company's stock price dropped by 20% after the news of the scandal broke. What is the cause?
APeople are buying more stock.
BInvestors have lost confidence in the company.
CThe company is making too much profit.
DThe stock market is closed.
✓ Correct Answer: B — Investors have lost confidence in the company.
Negative news or scandals lead to a loss of trust, causing investors to sell and prices to fall.
Share this question
More from Comprehension
- Read the passage: Time management is essential for students. By creating a schedule, students can balance their studies and leisure activities. This reduces last-minute stress during exams. Question: What is a benefit of creating a schedule for students?
- Archaeologists found evidence of irrigation systems in the desert dated back 3000 years. What can they infer about the ancient civilization?
- The shopkeeper kept a close eye on the group of teenagers but greeted the elderly woman with a warm smile and went back to his ledger. What can be inferred about the shopkeeper's attitude?
- The movie was three hours long, but not a single person left the theater. What does this suggest?
- Passage: Remittance has helped reduce poverty and improve the standard of living for many families in rural Nepal. Q53. What is one positive effect of remittance mentioned in the passage?