A high demand for a company's stock is an indication that
A)the company is in need of funds.
B)the company has recently sold a large quantity of bonds.
C)people are optimistic about the company's future.
D)people are pessimistic about the company's future.

Question

Quizplus · Accepted Answer

A high demand for a company's stock usually indicates that people have a positive outlook on the company's future, which leads to increased buying activity in the stock market. This can cause the stock price to rise as more investors seek to buy shares, resulting in high demand for the company's stock.

A High Demand for a Company's Stock Is an Indication