Stock prices are:
A)Set by the company issuing the stock
B)Set by the central bank
C)Determined by market transactions
D)Unrelated to the value of the company issuing the stock

Question

Quizplus · Accepted Answer

Stock prices are determined by market transactions. The price of a stock fluctuates based on supply and demand in the stock market. As more people want to buy a stock, the price goes up; as more people want to sell a stock, the price goes down. The value of a stock is related to the financial performance and future prospects of the company issuing the stock, but the actual stock price is set by market transactions.

Stock Prices Are