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 supply and demand in the market. Buyers and sellers negotiate prices based on their perception of the value of the company and factors that may impact its future performance. While the company's financial performance is an important consideration, it is not the sole determinant of stock prices. Therefore, options A, B, and D are incorrect.

Stock Prices Are