Which of the following factors does not affect the initial market price of a stock?
A) The company's anticipated future earnings
B) The par value of the stock
C) The current state of the economy
D) The expected dividend rate per share

Question

Quizplus · Accepted Answer

The par value of a stock is a nominal value assigned to a share by the issuing company and has little influence over the initial market price. The other factors listed, such as anticipated future earnings, the state of the economy, and expected dividend rates, all play a significant role in determining the initial market price of a stock.

Which of the Following Factors Does Not Affect the Initial