BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The market price of a share of common stock is determined by:
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the board of directors of the firm.
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the stock exchange on which the stock is listed.
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the president of the company.
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individuals buying and selling the stock.
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Explanation:
Detailed explanation-1: -The market price of a share of common stock is determined by: the board of directors of the firm. the stock exchange on which the stock is listed.
Detailed explanation-2: -Once a company goes public and its shares start trading on a stock exchange, its share price is determined by supply and demand in the market. If there is a high demand for its shares, the price will increase. If the company’s future growth potential looks dubious, sellers of the stock can drive down its price.
Detailed explanation-3: -Stock prices are largely determined by the forces of demand and supply. Demand is the amount of shares that people want to purchase while supply is the amount of shares that people want to sell.
There is 1 question to complete.