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If the public expects a corporation to lose $5 per share...

A) The stock price will increase
B) The stock price will decrease
C) The stock price will remain unchanged
D) The stock will split

User Qelli
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1 Answer

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Final answer:

If the public expects a corporation to lose $5 per share, the stock price will decrease.

Step-by-step explanation:

In this scenario, if the public expects a corporation to lose $5 per share, the stock price will decrease.

The price of a stock is influenced by the market's expectations and perceptions of a company's performance. When investors anticipate that a corporation will experience losses, they become less willing to buy or hold onto its stock. This decrease in demand leads to a decline in the stock price.

For example, if the public expects a corporation to lose $5 per share, investors may sell their existing shares, causing an increase in the supply of the stock and a decrease in the price.

User Jimmie Berg
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