Generally, if people expect a company to have higher future profits, the price of the stock will be driven down.

Name: Generally, if people expect a company to have higher future profits, the price of the stock will be driven down.
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Question

Quizplus · Accepted Answer

If people expect a company to have higher future profits, it is more likely that the price of the stock will be driven up as investors will be willing to pay more for a share in the company's potential future earnings.

Generally, If People Expect a Company to Have Higher Future