Answer:
Explanation: What is a stock/Product? A stock/ product is the finished/processed raw materials for resale by a manufacturer to the end user. There are various factors that determines the price of the stock/product and they are:
1. Cost of Production: the cost of getting the raw materials into the finished state for the use of the final consumer is a vital factor as no company can sell its products lower that the actual cost of producing the product. These costs includes the cost of the raw materials, cost of production, transportation costs and operational costs.
2. The Demand for the product: the forces of demand for a particular product is also a factor in determining the price of the product especially if the product does not have a close substitute in the market.
3. Government regulations: another factor in price determination of products is the Governments regulations on the products such as taxes on these products.
4. Prices of competing firms: The prices other firms producing the same kind of product sell also matters in the determining the price a product is to be sold. That means that your product must not be too expensive in the market compared to the products substitute.
5. The manufacturers objectives: the objectives of the manufacturer is also a factor. the manufacturer might decide that it wants to make a particular profit margin on the products and that will help in determining the price the product will be sold.