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Stock Trading MCQs

Why is it important to recognize what stage of the market cycle a company is in?

Because companies are required by law to report the stage

Because it helps decide whether to hire or fire employees

Because it indicates what the potential growth/decline rate is going to be in the near term

It is not important at all.

Answer

Correct Answer: Because it indicates what the potential growth/decline rate is going to be in the near term

Explanation:

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