Market forces are the primary determinant of share prices in the secondary market with prices increasing arising from:

Question

Quizplus · Accepted Answer

When there is excess buying pressure over selling pressure in the secondary market, demand for shares increases, causing the price to increase. Therefore, option A is the best choice. Option B is incorrect because excess selling pressure would lead to a decrease in share prices. Option C is also incorrect because if there is equilibrium between buying and selling pressure, then there is no significant change in share prices. Option D is partially correct, but option A is the most appropriate answer.

Market Forces Are the Primary Determinant of Share Prices in the Secondary