41
QuizMultiple Choice

The American Market Economy — Test

Question 41 • Economics

Once stocks are on the market, which best explains how their prices are set?

Answer
A
Prices are controlled by the issuing company.
B
Prices are set by the financial market.
C
Prices follow economic trends.
D
Prices fluctuate on the basis of demand.

Explanation

Once shares are available for trading, their prices change as buyers and sellers respond to supply and demand. When more investors want to buy a stock than sell it, its price tends to rise; when more want to sell than buy, it tends to fall. Therefore, “Prices fluctuate on the basis of demand” is the best choice.

AI-written and checked against the verified answer.

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