Question

Consumers are caught up in a craze over a new product put out by Caliente Company. People are snapping up Caliente Company's stock even though it is overvalued. Last month, sales of Caliente's stock peaked, and now investors are starting to sell off their stocks. Is the price of Caliente Company's stock likely to rise or fall? Explain your prediction.

Answer 1

The stock price is most likely to raise sine it's in more demand plus they always say buy low sell HIGH!