A characteristic of stock prices is that ________.
A)they tend to go up on the upswing of the cycle
B)they tend to go down on the downswing of the cycle
C)they are a leading indicator
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Stock prices do tend to go up on the upswing of the business cycle and go down on the downswing of the cycle. Additionally, stock prices are considered a leading indicator as they can provide insight into future economic activity.

A Characteristic of Stock Prices Is That ________