Assume the stock of Superior Oil Corporation is being traded on the New York Stock Exchange for $1,492 per share, while Getty Oil Company stock is trading at $64 per share. 

Required:

Explain how Superior Oil stock could be selling for a much larger price than Getty stock. 

Indicate whether you can conclude anything about the relative profitability of these two companies from their stock prices.

 

On the previous day, Superior Oil stock was selling at $1,471 per share, while Getty Oil sold for $62. Indicate which stock experienced the greater return. 

If you (as an investor) purchased Getty Oil at $62 per share and sold it the next day for $64, describe what effect your purchase and sale of stock would have on the financial statements of Getty Oil Company.