Large swings in stock prices are usually caused by
A)A decrease in interest rates.
B)Widespread changes in expectations.
C)A decrease in the supply of stocks.
D)An increase in dividend payments by corporations.

Question

Quizplus · Accepted Answer

Large swings in stock prices are usually caused by widespread changes in expectations. This can be due to various reasons such as changes in global economic conditions, political events, industry-specific news, or company-specific news. These changes in expectations can lead to shifts in demand and supply for stocks, causing significant price movements. Decreases in interest rates or supply of stocks, and increases in dividend payments may have some impact on stock prices, but they are not the main drivers of large swings.

Large Swings in Stock Prices Are Usually Caused by