The market price of a p

Question

Quizplus · Accepted Answer

The market price of a stock is affected by multiple factors such as dividend rate, profitability of the company, and interest rates. If the dividend rate is attractive, investors are more likely to buy the stock, which can increase the demand and therefore the price. If the chance of the company not operating profitably is high, investors may be less likely to invest in the stock, which can decrease demand and reduce the price. Similarly, if interest rates are high, investors may be more likely to invest in fixed-income securities rather than stocks, which can reduce demand and lower the stock price. Therefore, all three factors - dividend rate, profitability risk, and interest rates - can impact the market price of a stock.

The Market Price of a P