If the fundamental value of a stock is above the current market price of the stock, there will be a:

Question

Quizplus · Accepted Answer

If the fundamental value of a stock is above the current market price of the stock, it implies that the stock is undervalued. Investors will then be interested in buying the stock at a lower price, which will increase the demand for the stock. This increase in demand will lead to a rise in the price of the stock. Thus, there will be a rise in the price and demand of its stock.

If the Fundamental Value of a Stock Is Above the Current