The most important determinant of how much an individual will pay for a share of stock is
A)The average daily volume for the corporation's shares.
B)The expectation of future profit.
C)How well the CEO is compensated.
D)The structure of the market.

Question

Quizplus · Accepted Answer

The expectation of future profit is the most important determinant of how much an individual will pay for a share of stock. Investors buy stocks with the hope of making a profit, and the expectation of future profit is what drives the demand for a company's shares, ultimately determining the stock price. Factors such as the corporation's past performance, industry trends, and economic conditions can all influence an investor's expectation of future profit.

The Most Important Determinant of How Much an Individual Will