If the market price of a stock reflects all relevant information,what does its market price reflect?
A)the stock's exogenous value
B)the stock's extrinsic value
C)the stock's par value
D)the stock's intrinsic value

Question

Quizplus · Accepted Answer

The market price of a stock reflects its intrinsic value, which is determined by all available information about the company's financial performance, industry trends, management quality, and other factors that could affect its future earnings prospects. This information may include financial statements, analyst reports, news articles, and other sources of information that investors use to make informed decisions about whether to buy, sell, or hold a particular stock. The market price represents the current supply and demand for the stock, which changes constantly as new information becomes available and investor sentiment fluctuates. While other factors like par value, extrinsic value, and exogenous value may have some influence on the stock's price, they are not as important as its intrinsic value in determining the market price over the long term.

If the Market Price of a Stock Reflects All Relevant