The most important determinant of the market price of a share in a company listed on the stock exchange is:
A) the price at which the share was originally issued.
B) limited liability.
C) the company's management.
D) supply and demand for the shares.

Question

Quizplus · Accepted Answer

The most important determinant of the market price of a share is the supply and demand for the shares. The more people want to buy the shares, the higher the price will be. The more people want to sell the shares, the lower the price will be. The other options listed (A, B, and C) may have some influence on the share price, but they are not the most important determinant.

The Most Important Determinant of the Market Price of a Share