How is the market value of a stock determined?
A) Interest rates
B) The firm's owners' equity
C) Number of shares available
D) Profit-seeking potential
E) How much buyers are willing to pay

Question

Quizplus · Accepted Answer

The market value of a stock is ultimately determined by supply and demand in the market. Investors assess the profit-seeking potential of the company, along with other factors, and make an offer to buy the stock at a certain price. The price at which buyers and sellers agree to transact determines the market value of the stock. Therefore, the market value depends on how much buyers are willing to pay for the stock.

How Is the Market Value of a Stock Determined