The Demand for Stocks

question 35

Multiple Choice

The demand for stocks:

• A) is largely a guessing game.
• B) mostly depends on their price.
• C) is mostly a function of buyers' beliefs about their future prices.
• D) comes from companies who want to borrow money.

---

Definitions:

Allocation of Resources

The process of distributing available resources among various uses to satisfy the needs and wants of the society.

Taxes

Financial charges imposed by a government on individuals, businesses, or other entities to fund public spending and various services.

Prices

The monetary value assigned to goods and services in a market, determining the exchange rate in transactions.

Decisions

The process of making choices or conclusions after consideration, often involving options in personal, professional, or organizational contexts.