The price of a stock will rise if
A)the managers of a stock exchange decide the price should be higher.
B)the demand for the stock rises.
C)the supply of the stock rises.
D)None of the above are correct.

Question

Quizplus · Accepted Answer

The demand for the stock rising indicates that investors have a higher willingness to buy the stock at a higher price, which can cause the stock price to rise. The managers of a stock exchange do not have the authority to unilaterally increase the price of a stock, and an increase in the supply of stock may lead to a decrease in its price.

The Price of a Stock Will Rise If