Final Answer:
Stock prices are determined by the forces of supply and demand in the stock market. When there is more demand for a stock than there is supply, the price of the stock will rise. Conversely, when there is more supply of a stock than there is demand, the price of the stock will fall. so, the correct answer is d. They are influenced by supply and demand.
Step-by-step explanation:
Stock prices are determined by the forces of supply and demand in the stock market. If more investors want to buy a stock (demand) than sell it (supply), then the price goes up. Conversely, if more investors want to sell a stock than buy it, the price goes down.
The other options are not accurate:
a. The dividend payout is just one factor influencing stock prices. Higher dividends may attract investors, but they are not the sole determinant of potential appreciation.
b. Stock prices do not continually appreciate. They can fluctuate based on various factors such as market conditions, economic indicators, and company performance.
c. Stock prices are not regulated by the Bank of Canada. Stock markets are generally regulated by securities commissions and exchanges.
Therefore, the correct answer is d. They are influenced by supply and demand.