All else being equal, when people become less optimistic about a company's future, then:
A)the demand for the stock (and thus the price) rises
B)the demand for the stock (and thus the price) falls
C)the supply of the stock (and thus the price) rises
D)the supply of the stock (and thus the price) falls

Question

Quizplus · Accepted Answer

When people become less optimistic about a company's future, they will be less willing to buy the stock, thus reducing the demand for the stock, and therefore lowering the price.

All Else Being Equal, When People Become Less Optimistic About