Louise Rogers knows that several factors affect the price of a share of common stock.The one that says there is an inverse relationship between interest rates and the value of a share of common stock is the ________ factor.

Question

Quizplus · Accepted Answer

The inverse relationship between interest rates and the value of a share of common stock is known as the interest rates and stock valuation factor. When interest rates rise, investors tend to demand higher returns, causing the value of stocks to decrease. On the other hand, when interest rates decrease, the value of stocks tends to increase.

Louise Rogers Knows That Several Factors Affect the Price of a Share