The price of a stock is determined by the demand for and supply of that stock. Both

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The price of a stock is determined by the demand for and supply of that stock. Both demand and supply depend on investors’ expectations of the future performance—future economic profits—of the firm.

Explain what happens to a firm’s stock when the company earns less than investors expect.

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Economics

ISBN: 9781032046723

9th Edition

Authors: William Boyes, Michael Melvin

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Question Posted: Apr 25, 2024 12:00 AM

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The price of a stock is determined by the demand for and supply of that stock. Both

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When a company earns less than investors expect it can lead to various reactions in the stock market affecting the price of the firms stock Heres what ...View the full answer

Economics

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