Asked by stuckinmath
More funds would be directed to private markets, including the stock market, so stock price indexes would ______ (rise / fall), other things being equal.
Answers
Answered by
Joe
Rise. If the demand for stocks increases, the price goes up. Unless a company offers more shares for sale, there are a limited number on offer. So, as in anything, if the demand is larger than the supply, the price increases.
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