Which of the Following Statements About the Impact of the Stock

Multiple Choice

Which of the following statements about the impact of the stock market is true?

A) The stock market has little effect on the amount of capital a company has.
B) If a company exceeds its performance expectations, its stock price will often drop.
C) Publicly held companies are more insulated from the stock market than privately held companies.
D) The stock market may have a profound effect on the behavior of individual managers.
E) Stock market fluctuations have little effect on the compensation of managers.