QUESTION IMAGE
Question
why is american cellular so cheap? * 1 point
no potential to make any money
it hasnt made a profit yet and is a high risk
why is general grocery so expensive? * 1 point
low supply of stocks but high demand
does not change much over time but always makes some profit
eating out trend is expected to eat into profits
its not profitable
For the first question, if a company is considered high - risk (hasn't made a profit yet), investors may demand a lower price (higher return for the risk), which could make its stock cheap. For the second question, in the context of finance and economics (related to stock prices), low supply and high demand for a stock (General Grocery in this case) can drive up its price.
Snap & solve any problem in the app
Get step-by-step solutions on Sovi AI
Photo-based solutions with guided steps
Explore more problems and detailed explanations
For "why is American Cellular so cheap?": it hasn't made a profit yet and is a high risk.
For "why is General Grocery so expensive?": low supply of stocks but high demand.