select all the correct answers. which two factors directly affect the price of a stock? coupon rate the…

select all the correct answers. which two factors directly affect the price of a stock? coupon rate the companys business performance compound interest investor demand for the stock unemployment rate

select all the correct answers. which two factors directly affect the price of a stock? coupon rate the companys business performance compound interest investor demand for the stock unemployment rate

Answer

Brief Explanations:

  • The company's business performance: A company's financial health, earnings, growth prospects, and overall business operations directly impact its stock price. Strong performance often leads to higher stock prices as investors perceive greater value and potential returns.

  • Investor demand for the stock: If there is high demand for a particular stock (more buyers than sellers), the price tends to rise. Conversely, low demand (more sellers than buyers) can cause the price to fall. This is based on the basic economic principle of supply and demand.

  • Coupon rate: This is relevant for bonds, not stocks. Bonds have a coupon rate which is the interest payment they make to bondholders. Stocks do not have a coupon rate.

  • Compound interest: This is a concept related to the growth of an investment over time, typically used in savings accounts, fixed - income investments, etc. It is not a direct factor affecting stock prices.

  • Unemployment rate: While the overall economic condition (of which the unemployment rate is a part) can have an indirect impact on the stock market as a whole, it does not directly affect the price of an individual stock in the same way as the company's performance and investor demand.

Answer:

the company’s business performance, investor demand for the stock