Question

The price of a stock will rise if:

a) Managers of a stock exchange decide the price should be higher.
b) Demand for the stock rises.
c) Supply of the stock rises.
d) Demand for the stock falls.

Answer 1

The price of a stock will rise if the demand for the stock rises and it will fall if the demand for the stock falls.

Step-by-step explanation:

The price of a stock will rise if the demand for the stock rises. This is because when more people want to buy a stock, the price will increase due to the increased competition among buyers. On the other hand, if the demand for the stock falls, the price will generally decrease as there are fewer buyers.