Which of the following best describes the market price of a stock?
A)the price observed by investors in the financial media
B)the price observed in the OTC markets only
C)the price observed in the broad financial markets
D)the firm's book valued as reported in its financial statements

Question

Quizplus · Accepted Answer

The market price of a stock refers to the price observed in the broad financial markets, which includes all exchanges and all investors buying and selling the stock. This is the prevailing price at which buyers and sellers agree to trade the stock, and it constantly fluctuates based on supply and demand forces in the market. The other options (A, B, D) do not fully capture the market price concept.

Which of the Following Best Describes the Market Price of a Stock