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Give an example of an action that might increase profits but at the same time reduce...

Give an example of an action that might increase profits but at the same time reduce stock price.

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Action of company

Suppose, a company for earning short term gains, reduce the employees.

By reducing employees, company can easily save the salary cost and maximise the profits for short period of time

But as the time will pass, company will find it difficult to serve its customers/Clients properly.

Non performance difficulty will eventually reduce the market share of company nd when the market share reduces, stock price will get lower

Hence, For short term gains, any hasty decison should not be taken which can effect the stock prices in the negative way

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