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Typical reasons include an increase in the company's earnings, or in the value of its holdings, or its percentage of market share for its products. Stock price increases when there is a demand for the stock (buying) and will usually decrease if there is less demand (net selling).

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Which is most likely to lead to a decrease in the price of a companys stock?

Annual profits decrease


What is most likely to lead a increase in the price of a company's stock?

A good earnings report


What of these is most likely to lead to an increase price of a company's stock?

Answer : Its profits increase. Explanation : When a company is more profitable, it's stock is in higher demand, and higher demand means a higher price.


Which is most likely to lead to an increase in the price of company's stock?

Once a company goes public and its shares start trading on a stock exchange, its share price is determined by supply and demand in the market. If there is a high demand for its shares, the price will increase.


What is most likely to lead to an increase in the price of a company's stock?

It's profits are increased.


Why does selling stock lower the price?

Selling stock can lower the price because when there is more supply of a stock available for sale than there is demand from buyers, the price tends to decrease. This is due to the basic economic principle of supply and demand, where an increase in supply without a corresponding increase in demand can lead to a decrease in price.


What are the potential benefits and risks of exercising call options?

Exercising call options can potentially lead to profits if the stock price rises above the strike price, allowing the option holder to buy the stock at a lower price. However, there is a risk of losing the premium paid for the option if the stock price does not increase as expected.


What is likely to lead to a decrease in the price of a company's stock?

The price of a stock typically changes with demand for the stock, which results from the actions of buyers and sellers. Things that typically lead to a reduction in a company's stock price include: - a decrease in net profits - a loss of market share, or an increase for competitors - revaluation or loss of assets - loss of confidence in the company's leadership - failure of a key product, or failure to interest potential customers


Under what conditions might profit maximization not lead to stock price maximization?

Under what conditions might profit maximization not lead to stock price maximization?"


What is the significance of buying pressure in the stock market?

Buying pressure in the stock market is significant because it indicates a higher demand for a particular stock, which can lead to an increase in its price. This can signal positive sentiment among investors and potentially drive the stock's value up.


A reduction in market price will lead to an increase in what?

Quantity demanded


According to the law of supply What does an increase in the price of a good service or resource lead to an increase in?

Supply. If you are a supplier of a good - the price for your good increase - you will produce more to take advantage of this

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