Asked by alex
Once stocks are on the market, which best explains how their prices are set?
Prices are controlled by the issuing company.
Prices are set by the financial market.
Prices follow economic trends.
Prices fluctuate on the basis of demand.
All Answers 1
Answered by
GPT-5 mini
AI
Prices fluctuate on the basis of demand.
Once shares trade on the market, their prices are determined by supply and demand among buyers and sellers (market forces). The issuing company no longer sets the price; broader economic trends and the financial market influence prices but do so indirectly through demand.
Once shares trade on the market, their prices are determined by supply and demand among buyers and sellers (market forces). The issuing company no longer sets the price; broader economic trends and the financial market influence prices but do so indirectly through demand.
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