The price of a stock will rise if the

Question

a. demand for the stock rises.
b. demand for the stock falls.
c. managers of a stock exchange decide the price should be higher.
d. supply of the stock rises.

Answer 1

The price of a stock will rise if the:

a. demand for the stock rises.

When demand for a stock increases, buyers are willing to pay more, which typically drives the price up. Conversely, if demand falls or supply rises, prices may decrease. The decisions of stock exchange managers generally do not directly influence stock prices; they are determined by market forces of supply and demand.