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If you were an investor during the dot revolution, and you invested primarily in technology stocks, what fundamental principle of finance did you ignore and how did it affect the value of your portfolio

Sagot :

Nyctalus

Answer:

If an individual has shares in a dot.com or IT firm in his or her portfolio, the essential concept of finance that might be overlooked while owning the commodity is :

1) The corporation's income/EPS has decreased.

2) A slowdown in the corporation 's growth and turnover.

3) The dividend payment ratio will be reduced.

Quarterly effects on the outcomes would rarely make a difference in the year results, given the seasonal or business pattern in IT organisations.

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