Which of the Following About Stock Prices Is True

Multiple Choice

Which of the following about stock prices is true?

A) The buyer of a firm's stock is purchasing a fractional share in the firm's future net revenues.
B) When investors believe that a business decision by the management of a firm will increase the firm's future earnings, the price of the firm's stock will tend to rise.
C) Changing stock prices provide the board of directors and managers of a firm with a strong incentive to make good decisions and undertake productive projects.
D) All of the above are true.