asked 78.4k views
0 votes
A strong stock market depends on

A)many investors speculating.
B)many investors buying on margin.
C)most consumers buying on credit.
D)overall confidence in the economy.

asked
User Jdobres
by
8.4k points

2 Answers

2 votes

Answer:

answer is d

Step-by-step explanation:

answered
User Muteshi
by
7.9k points
5 votes

The correct answer is D.

When a economy experiences growth, it means the conditions are suitable for maintaining high investment levels and it also means that companies are functioning properly and generating profits.

Therefore, investors are willing to buy shares from those profitable companies, expecting to make profits either from earning dividends or from re-selling them subsequently at a larger price.

If demand for shares is sustained there is a strong market.

answered
User Patrik
by
7.9k points
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