The Demand Curve for Shares of a Stock Is Typically

question 114

Multiple Choice

The demand curve for shares of a stock is typically

• A)downward sloping,because people calculate present value according to different expectations and attitudes toward risk
• B)vertical,because only a fixed number of shares of stock are available
• C)horizontal,because everyone values the stock according to its present value
• D)upward sloping,because a higher stock price signals to potential shareholders that the firm is more valuable
• E)horizontal,because no one is willing to pay more than the market price

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