An important factor in stock prices that is separate from interest rates and profit expectations is

Question

Quizplus · Accepted Answer

The expected price of the stock in the near future is an important factor in stock prices because investors base their decisions on the potential for future gains. If investors believe the stock will increase in value in the near future, they will buy more of it, which can drive up the stock price. Conversely, if investors believe the stock will decrease in value in the near future, they will sell it, which can drive down the stock price. CEO desires, Board of Directors' mandates, and Securities and Exchange Commission mandates may all have some impact on stock prices, but they are not separate factors from interest rates and profit expectations, as they all ultimately relate to the company's financial performance and management.

An Important Factor in Stock Prices That Is Separate from Interest