The market price is the current market value of a stock. It is determined by demand and supply. The factors determining a stock’s market price are interest rates, inflation, economic growth, and dividends.
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The market price of a stock is determined by demand and supply. The factors determining a stock’s market price are interest rates, inflation, economic growth, and dividends. Interest rates: The interest rate is the price of money.
It is used to determine the cost of funds for a company, and it dictates what investors will be willing to pay for a company’s debt. Inflation is defined as “a sustained increase in the general price level.
Economic growth: Economic growth refers to an increase in gross domestic product. If a country’s GDP increases, its stock market will likely become more active, and prices are also expected to rise.
If a country’s GDP decreases, its stock market will likely become less active, and prices are also expected to fall. , and vice versa. A decrease in GDP often leads to a decrease in the stock market’s value.
On the other hand, an increase in GDP typically leads to an increase in stock market values. The stock market is an example of a commodity market. . The stock market typically refers to the stock exchanges in which companies are traded.