USA HISTORY

THE GREAT DEPRESSION 1929 1940

THE GREAT DEPRESSION

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Stock values usually change over time. Why might the value of a stock go up?
A
if the government orders it to go up
B
if people don’t want to buy it
C
If people are willing to pay more money for it
D
None of the above
Explanation: 

Detailed explanation-1: -By this we mean that share prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall.

Detailed explanation-2: -High demand is the primary driver of what makes a stock price go up. The higher the demand, the higher the price investors will be willing to pay for each share (and the higher the price owners will be demanding to sell their shares). Similarly, low demand is the primary driver of what makes a stock price go down.

Detailed explanation-3: -The average stock market return is about 10% per year for nearly the last century, as measured by the S&P 500 index. In some years, the market returns more than that, and in other years it returns less.

Detailed explanation-4: -Some of the most common reasons include changes in the company’s financial performance, shifts in market demand for the company’s products or services, company’s earnings, a positive change in market conditions, news, or an increase in demand for the company’s stock and changes in the overall economic environment.

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