Question

You own shares in a start-up internet company. If large swings in the stock market increase financial investors' concerns about market risk, then the price of your shares will __________, holding other factors constant.

Answer 1

The correct answer is Decrease.

Step-by-step explanation:

The external factors of uncertainty cause a collapse of the value of the shares in the stock market, by increasing the level of skepticism according to any adverse situation in the market that causes a drop in the negotiation of the titles. An investor generally in this scenario will try to take care of their assets by trading the shares at a lower value, which directly affects the earnings of the owner of the share.