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Assume that the share market has been experiencing a sudden surge in demand for Company XYZ's stocks. As a result, the company's stock price has skyrocketed in the past few days.
Which of the following options is the most likely reason for this surge?
  • a)
    The company has reported a significant drop in profits for the quarter.
  • b)
    The company has been embroiled in a major scandal involving environmental violations.
  • c)
    The company has announced the resignation of several key executives.
  • d)
    The company has recently announced a major breakthrough in its technology.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Assume that the share market has been experiencing a sudden surge in d...
Option A cannot be the correct reason as reporting a significant drop in profits would generally lead to a decrease in demand for the company's stocks.
Option B cannot be the correct reason as being involved in a major scandal involving environmental violations would also have a negative impact on the company's reputation and stock price.
Option C cannot be the correct reason as the resignation of key executives might raise concerns about the stability and future prospects of the company, potentially leading to a decrease in demand for its stocks.
Option D is likely to be the most plausible reason for the surge in demand for Company XYZ's stocks and the subsequent increase in stock price. A major technological breakthrough can generate excitement and optimism among investors, leading to increased demand for the company's stocks.
Hence, the correct answer is 'The company has recently announced a major breakthrough in its technology'.
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