Question

. A tech company loses a high-profile patent-infringement case against its top competitor. Which of the following is true? a. Demand for the company's stock decreases, while the price of a share falls. b. Demand for the company's stock decreases, while the price of a share rises. c. Supply of the company's stock decreases, while the price of a share falls. d. Supply of the company's stock decreases, while the price of a share falls

Answer 1

Answer:

a. Demand for the company's stock decreases,

Explanation:

As a result of losing the case, investors would not want to hold the stock of the company due to the anticipated dip in revenue of the firm as a result of losing the case. As a result, there is a dip in the demand for stock.

when demand for the stock falls, the price of the stock also reduces.