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The market price of a share of stock is determined by:

a. The new york stock exchange
b. The company’s management
c. Individuals buying and selling the stock
d. The federal reserve

1 Answer

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Final answer:

The market price of a stock is determined by individuals buying and selling the stock, typically on a stock exchange like the New York Stock Exchange.

Step-by-step explanation:

The market price of a share of stock is primarily determined by c. individuals buying and selling the stock. The New York Stock Exchange is a hub where these transactions occur, acting as a facilitator for the trade of stocks. The price at which stocks trade on the exchange is a reflection of supply and demand dynamics in the market, where numerous individual and institutional investors make decisions based on their assessments of a company's current performance and future prospects. Company management may influence a stock's value through their decisions and the company's performance, but they do not set the market price directly. The Federal Reserve can influence stock prices indirectly through monetary policy which affects the economy at large, but it does not determine individual stock prices.

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