Stock values are determined by ________.
A)the net worth of a business divided by shares outstanding
B)calculating the price/earnings ratio
C)the past performance of the company
D)what investors are willing to pay for the stock

Question

Quizplus · Accepted Answer

Stock values ultimately depend on what investors are willing to pay for them. While factors such as the net worth of a business and its past performance may influence investors' decisions, the final determination of stock value is based on supply and demand in the market. The price/earnings ratio is just one tool used to evaluate a stock, but it does not determine its value.

Stock Values Are Determined by ________