Question

You own shares in a start-up internet company. If large swings in the stock market increase financial investors' concerns about market risk, then the price of your shares will __________, holding other factors constant.

Answer 1

Answer:

The price of shares will Decrease.

Explanation:

This is because as investors fear the market volatility, they tend to exit the market and sell the shares. The excess supply of company's shares in the share market over the lower demand, the prices of shares will go down.