If more people think a corporation's stock is overvalued than think it is undervalued then there is a
A)surplus,so its price will rise.
B)surplus,so its price will fall.
C)shortage,so its price will rise.
D)shortage,so its price will fall.

Question

Quizplus · Accepted Answer

If more people think a corporation's stock is overvalued, then they will likely sell their shares, resulting in a surplus of supply. This surplus will drive down the price of the stock. Therefore, the correct choice is B, surplus so its price will fall.

If More People Think a Corporation's Stock Is Overvalued Than