Which of the following most likely determines the price of stocks traded on exchanges?
A) the Corporate Securities Commission
B) the supply and demand for goods and services
C) the supply and demand for the stock
D) the Toronto Stock Exchange

Question

Quizplus · Accepted Answer

The supply and demand for the stock is the main factor that determines the price of stocks traded on exchanges. When there is high demand for a stock and limited supply, the price is likely to increase. Conversely, when there is low demand and a surplus supply, the price is likely to decrease. Other factors such as company performance and economic conditions can also impact the price of stocks, but ultimately it is the supply and demand for the stock that drives its price.

Which of the Following Most Likely Determines the Price of Stocks