BA218 Ch.14 Assign.

Dividends per Share The dividends per share measure gives you the amount of dividends paid per share of common stock on an annual basis. For example, suppose company A elects to pay a total cash dividend of $9,000 for the year to common stockholders. Also suppose that the company has issued a total of 12,000 shares of outstanding common stock. In this case, the annual cash dividends per share for this company would be $___ per share.

$1.33 **MATH** 12,000 / 9,000 = 1.33

In the example involving JL Chemicals, which value is higher? 1. The stock's potential rate of return (from step 4) 2. The required rate of return (from step 3)

2

Step 1: Calculate the total market capitalization for Two-Hearts Candy Makers: Total Market Capitalization = ___ shares x $___ per share = $___

20,000 ; 40 ; 800,000

1. For example, suppose you have just purchased stock in JL Chemicals that has a beta value of 1.2. If the average price of all stocks rises by 20% over a period of time, then you would expect the price of JL Chemicals stock to rise by ___%. However, if the average price of all stocks falls by 10% over a period of time, then you would expect the price of JL Chemicals stock to fall by ___%. 2. In general, a stock with a higher beta value is ___ risky than a stock with a lower beta value.

24 ; 12 2. more

1. Using an assumed price/earnings ratio of 8.0 (the same as the current ratio), you can estimate the market price of the stock after five years to be $___ per share. (Note: Round your answer to two decimal places.)

30.88

Historical records indicate that ___ % represents a realistic estimate of market risk for U.S. stocks. However, in the short term or in times of economic turbulence, the market risk may be significantly ___ .

8 ; higher

Step 2: Calculate the price/sales ratio (P/S ratio) for Two-Hearts Candy Makers: Price/Sales Ratio = $___ / $___ = ___

800,000 ; 250,000 ; 3.20

Once you have determined the projected stock price and the average annual dividend (as shown in the previous table), you can convert those figures into a potential rate of return by calculating the approximate compound yield (ACY) with the following equation: (Note: Do not round intermediate calculations. Round your final answer to one decimal place.) (Look at picture below)

= ___ % 11.1

This type of order instructs the stockbroker to sell your shares of stock at the market price if the stock declines or goes below a specified price. Investors use this type of order to protect themselves from losing money due to a sharp drop in the price of their investment.

Stop Order (or stop-loss order)

3. Types of investments - Preferred stock What is the Difference Between Common Stock and Preferred Stock? Common stock and preferred stock are both types of ___ investments. Owners of a preferred stock receive a fixed cash dividend per share, which corporations are required to distribute ___ any dividends are paid out to common stock shareholders. In addition, unlike common stockholders, preferred stockholders usually ___ voting rights.

ownership ; before ; do not have

You should consider investing in bonds if you desire ___ from a portion of your investments. Although bonds typically offer ___ returns to investors than stocks, there are good reasons to consider including bonds in your portfolio:

period income ; lower

Corporate earnings are at the core of fundamental analysis. Corporate earnings are the ___ that a company has during a specific period of time. Corporate earnings are a central factor in determining a stock's intrinsic value. If a company cannot generate earnings, either now or in the future, then investors ___ be impressed, there will be ___ buyers than sellers, and the stock price will ___ . Therefore, according to fundamental analysis, you should invest in a stock, because you have good reasons to think that the company can generate earnings and profits.

profits ; will not ; fewer ; fall

Book Value per Share A company's book value per share is the book value of the company (assets minus debts) divided by the number of outstanding shares of common stock. Calculate the book value per share for P&L Broadcasting Company: Book Value per Share = Book Value / Number of Outstanding Shares of Common Stock = $___ / ___ shares = $___ per Share

$280,500 ; 7,500 ; $37.40

P&L Broadcasting Company After a payment of $7,000 to preferred stockholders, P&L Broadcasting Company had a net profit of $35,000. P&L Broadcasting Company has issued 14,000 shares of common stock. = $___ / ___ = $___

$35,000 ; 14,000 ; $2.50

Fizzy Soda Company After a payment of $4,000 to preferred stockholders, Fizzy Soda Company had a net profit of $45,000. Fizzy Soda Company has issued 50,000 shares of common stock. = $___ / ___ = $___

$45,000 ; 50,000 ; $0.90

Price-to-Book Ratio (P/B Ratio) A company's price-to-book ratio (P/B ratio) is the current market price divided by the company's book value per share. Calculate the price-to-book ratio for P&L Broadcasting Company: Price-to-Book Ratio=Current Market Price / Book Value per Share = $___ per Share / $___ per Share = ___

$78.54 ; $37.40 ; 2.10

Consider the following hypothetical example: Two-Hearts Candy Makers has issued 20,000 shares of common stock, which is currently trading at a market price of $40. Over the past year, the company's revenues (total sales) were $250,000.

**Use for next 3 questions **

Dividend Payout Ratio The dividend payout ratio is the dividends per share divided by the earnings per share (EPS). This measure helps you judge the likelihood of future cash dividends. The dividend payout ratio is also equal to a company's total annual cash dividends divided by the company's total earnings for the year. For example, suppose company B earned $42,000 after paying preferred stockholders, paid out a total cash dividend of $7,000 for the year, and retained the remaining $35,000 to facilitate growth of the company. In this case, the dividend payout ratio (as a decimal) would be ___ (rounded to the nearest 1/100th percent). Newer companies usually retain most, if not all, of their profits to facilitate growth. Therefore, if you are interested mainly in capital gains through growth, you should seek a company with a ___ dividend payout ratio. The lower the payout ratio, the ___ likely the company is to grow, resulting in later capital gains for investors.

0.17 ; low ; more **MATH** 7,000 / 42,000 = 0.166 = 0.17

Dividend Yield The dividend yield is the cash dividend paid to an investor, expressed as a percentage of the current market price of the security. For example, suppose company C pays an annual dividend of $0.25 per share of common stock. The current market price of the stock is $50.00. Therefore, the dividend yield for this stock is ___%. Growth and speculative companies typically pay little or no cash dividends, which means that they will have a limited dividend yield. Companies with low dividend yields are attractive to investors seeking ___ . By contrast, companies with high dividend yields are attractive to investors seeking ___ .

0.5 ; capital gains ; current income *MATH** 0.25 / 50 = 0.005 = 0.5%

5. Market capitalization - Large-cap, small-cap, mid-cap, and micro-cap stocks Indicate the range of market capitalization for large-cap, mid-cap, small-cap, and micro-cap stocks on the following graph (not to scale): 1. Large-cap stocks: ___ 2. Mid-cap stocks: ___ 3. Small-cap stocks: ___ 4. Micro-cap stocks: ___

1. Greater than $10 billion 2. $2 billion to $10 billion 3. $300 million to $2 billion 4. $50 million to $300 million

1. The abbreviated trading symbol for Tomorrow Media Co. stock is ___ . 2. The price of the final trade of Tomorrow Media Co. stock before the market closed on the previous day is $___ .

1. TOM 2. 12.25

Enter all values as positive. 1. Since the close of market on the previous day, the price of Tomorrow Media Co. stock ___ by $___ . 2. In the past year, the price of Tomorrow Media Co. stock reached a maximum price of $___ and a minimum price of $___ . 3. Since January 1 of the current calendar year, the price of Tomorrow Media Co. stock has ___ by ___ % . 4. Based on the previous quarterly dividend issued by Tomorrow Media Co., the estimated annual dividend amount for Tomorrow Media Co. is $___ . Expressed as a percentage of dividend income, the yield of Tomorrow Media Co. stock (to two decimal places) is ___ % . 5. According to the provided stock quote table, the number of individual shares of Tomorrow Media Co. stock that were traded on that day was ___ .

1. fell ; 1.96 2. 20.81 ; 10.68 3. fallen ; 33.75 4. 0.50 ; 4.08 5. 1,542,300

1. Municipal government bonds (also called munis) are ___ debts issued by ___ . The proceeds from these bonds are used to finance public improvement projects (such as roads, bridges, parks, and so on) or to pay ongoing expenses. 2. The investor's interest income on municipal bonds ___ subject to federal income taxes. Therefore, municipal government bonds are also known as ___ bonds. However, capital gains on the sale of municipal bonds ___ taxable. 3. Municipal bonds generally offer a ___ stated return than other types of bonds. However, it may make sense to invest in municipal bonds if your marginal tax rate is higher than ___ %, because the after-tax return on a municipal bond might be higher than the return on a corporate bond.

1. long-term ; local government agencies 2. is not ; tax-free ; are 3. lower ; 25

1. A bond is basically an IOU. When you purchase a bond, you lend the issuer a certain amount of money called the ___ with two expectations: A. you will receive regular interest payments at a fixed rate of return. B. your principal will be returned to you at some point in the future, called the ___ date.

1. principal B. maturity

1. Including bonds in your portfolio can ___ your portfolio's level of risk due to market risk. 2. Bonds allow you to obtain income that is ___ . 3. Many bonds have the potential to increase in value over time. 4. Bonds can allow you to tailor your investment portfolio to match your investment time horizon.

1. reduce 2. regular and predictable

The price-to-book ratio helps you identify firms that are rich in assets, such as many banks, brokerage firms, and insurance companies. The price-to-book ratio can also tell you the premium that you are paying for the net assets of the company. Most stocks have a price-to-book ratio ranging from ___ . The higher a company's price-to-book ratio, the ___ the company's assets are valued, as reflected in the stock's current market price. If a company's price-to-book ratio is less than 1.0, then the company's assets may be utilized ineffectively by the company. In this case, an underperforming and undervalued company may become the target of an acquisition by another company.

1.0 to 2.1 ; higher

For example, suppose that the stock for JL Chemicals has a beta value of 1.2. If you assume a market risk of 8% and the current T-bill rate is 2.0%, the total rate of return you will require on this investment is ___ %. (Hint: Round your answer to one decimal place.) In other words, you would need a promise of a higher rate of return than this percentage in order to justify putting your money at risk in this investment.

11.6

12. Securities Market Indexes

A securities market index is an indicator of market performance. It measures the average value of a number of securities chosen as a sample to reflect the behavior of a more general market. Indexes aim to provide a comprehensive, unbiased, and stable barometer of a broad market. Investors use indexes to determine trends to help in their investment decisions. Identify the various popular securities market indexes from the following descriptions:

Step 1 - Use the Stock's Beta Value to Estimate the Risk of the Investment

A stock's beta value is a measure of the stock's volatility—that is, how much the stock price varies relative to the rest of the market as a whole. A stock's beta value can help you to estimate the amount of risk in an investment portfolio.

Investors who purchase shares of common stock in a corporation have two expectations: A. The corporation will be profitable enough that income will exceed expenses, thereby allowing the firm to pay a share of the profits distributed in cash to shareholders. These payments to shareholders are called ___ . B. The ___ , which is the current price that a buyer is willing to pay a seller for one share, will increase over time.

A. Cash Dividends B. Market Price

A. Shares of a public corporation's stock ___ traded on a stock exchange, such as the New York Stock Exchange. This means that corporation ___ is a public corporation. B. Shares of a privately held corporation's stock are usually owned by a relatively ___ number of people, and these shares ___ sold on a stock exchange, such as the New York Stock Exchange. This means that corporation ___ is a privately held corporation.

A. are ; A B. small ; are not ; B

Step 5 - Compare the Required Rate of Return with the Potential Rate of Return on the Investment

After calculating your required rate of return (in step 3) and the potential rate of return on an investment (in step 4), you can compare these two values to determine whether the stock would be a good value for you to buy at the current price. If the potential return on an investment is greater than your required rate of return, the stock may be underpriced, and it might be a good investment at the current price.

10. Additional numerical measures to evaluate stock prices - Bookvalue, book value per share, and price-to-book ratio

Although a company's earnings per share (EPS) and price/sales ratio (P/S ratio) are the most important measures to evaluate a stock using fundamental analysis, several other numerical measures are also used to evaluate stock performance.

9. Additional numerical measures to evaluate stock prices - Cash dividends, dividends per share, dividend payout ratio, and dividend yield

Although a company's earnings per share (EPS) and price/sales ratio (P/S ratio) are the most important measures to use in evaluating a stock with fundamental analysis, several other numerical measures are also used to evaluate stock performance:

Earnings per Share (EPS) You can calculate a company's earnings per share (EPS) using the following equation: Earnings per Share (EPS) = ___ / ___

Annual Net Profit ; Number of Outstanding Shares of Common Stock

11. Calculating a potential investment return - Five steps

Calculating a stock's potential rate of return takes five steps:

1. Types of Corporations - Public Corp. & Privately Heldcorporations Corporation A: Corporation A has issued a total of 1 million shares of stock. These shares are traded on the New York Stock Exchange (NYSE) and can be bought and sold by individual investors.

Corporation B: Corporation B has issued a total of 50 shares of stock, which are divided unevenly between 10 people. These shares are not traded on a stock exchange.

This type of order is valid only for the remainder of the trading day during which the order was given to the brokerage firm. Unless otherwise indicated, any order received by a stockbroker is assumed to be of this type.

Day Order

This index is the most popular and widely reported index. It follows prices of only 30 actively traded blue-chip stocks. The value of the index is calculated by adding the closing prices of the 30 stocks and dividing by a number adjusted for stock splits, spin-offs, and dividends.

Dow Jones Industrial Average (DJIA)

This index represents the total market value of virtually all the publicly traded stocks in the United States. One point in the index is worth $1 billion.

Dow Jones Wilshire 5,000 Index

Step 3 - Calculate your Required Rate of Return The return on short-term U.S. Treasury bills (T-bills) has historically exceeded the rate of inflation by a slight degree. For example, when T-bills pay 2% interest, the inflation rate might be around 1.7%. In this case, T-bills provide almost no gain for the investor, because inflation and income taxes reduce the return to about zero. Therefore, investors often use the yield on Treasury bills as a base number that provides a zero real rate of return, that is a zero return on an investment after inflation and income taxes. To calculate your required rate of return on an investment, multiply the investment's beta value by the estimated market risk and then add the risk-free T-bill rate as shown in the following equation:

Estimate of the Required Rate of Return on an Investment = T-bill Rate + (Beta × Market Risk)

This type of order instructs the stockbroker to buy or sell the stock at the market price immediately or else cancel the order.

Fill-or-Kill Order

Because you have purchased ___ of the total number of shares in corporation A, you are entitled to that portion of the corporation's assets and income but only after all other higher-priority claims (for example, bond payments) have been satisfied. This proportional entitlement to the corporation's assets and income is called ab ___ claim.

Five-Eighths (5/8) ; Residual

These securities are non-marketable savings bonds, backed by the U.S. government, that pay an earnings rate that is a combination of two rates: a fixed-interest-rate set when the investor buys the bond and a semiannual variable-interest-rate tied to inflation that protects the investor's purchasing power.

I-bonds

This type of order instructs the stockbroker to buy or sell a stock at a specific price. It may also include instructions to buy at the best possible price but not above a specified maximum price, or it may include instructions to sell at the best possible price but not below a specified minimum price.

Limit Order

If you own shares of common stock in a corporation, then you have a ___ liability, which means that your responsibility for business losses is limited to ___ .

Limited ; the amount invested in shares of stock owned

This type of stock order instructs the stockbroker to execute an order at the current market price, regardless of its value. Most stock trades are of this type.

Market Order

This type of order is effective until the close of trading on the last day of the current month.

Month Order

17. Types of bonds - Municipal government bonds (munis)

Municipal Government Bonds (Munis)

This index takes into account virtually all U.S. stocks (about 3,100) traded in the over-the-counter market in the automated quotations system operated by the National Association of Securities Dealers. It provides a measure of companies not as popular or as large as companies traded on the New York Stock Exchange. This index includes price behavior of many smaller, more speculative companies, although some big companies are listed as well. This index is often used as a benchmark for the performance of high-tech stocks.

NASDAQ Composite Index

Based on the price/sales ratio for Two-Hearts Candy Makers, should you consider this company's stock to be a good investment?

NO

This type of order remains valid until executed by the stockbroker or until cancelled by the investor.

Open Order, or Good-til-Cancelled (GTC) Order

2. Types of investments - Common stock What is a Common Stock? Stocks are considered ___ investments, because each person who possesses a share of stock in a corporation has a proportionate interest in the corporation's assets and income. Owners of a company's stock are called shareholders or stockholders. Common stock is the most basic form of ownership in a corporation.

Ownership

For the remaining questions on this page, assume the following information about a fictional company P&L Broadcasting Company:

P&L Broadcasting Company Book value:$280,500 Outstanding shares of common stock:7,500 shares Current market price:$78.54 per share

This index is a small-cap stock market index of relatively small capitalized companies. This index is the most widely quoted measure of overall performance of the small-cap to midcap companies.

Russell 2,000 Index

This index reports price movements of 500 stocks of large, established, publicly traded firms. It includes stocks of 400 industrial firms, 40 financial institutions, 40 public utilities, and 20 transportation companies. Companies with the highest market values influence the index the most.

Standard & Poor's (S&P) 500 Index

14. Types of stock orders

There are two main types of stock orders: buy and sell. When a stockbroker receives an order, the stockbroker will buy or sell securities according to prescribed instructions in a process called executing an order. The instructions included with a stock order may include constraints on the prices at which those orders are carried out. Identify the various types of stock orders from the following descriptions:

Step 2 - Estimate the Market Risk

To estimate the required rate of return on an investment, you must first estimate and quantify the market risk. Market risk (also known as systematic risk) is the risk associated with the effects of the overall market on securities markets. Market risk often causes the market price of a particular stock or bond to change, even though nothing has changed in the fundamental values underlying that investment.

Price/Sales Ratio (P/S Ratio) You can calculate a company's price/sales ratio (P/S ratio) using the following equation: Price/Sales Ratio (P/S Ratio) = ___ / ___

Total Market Capitalization ; Sales for the Past Four Quarters

Identify the various types of Treasury securities from the following descriptions: These securities are short-term government securities with maturities ranging from a few days to 52 weeks. They are sold at a discount from their face value (or "par"). The difference between the original purchase price and what the Treasury pays you at maturity is the interest, which is called a "discount yield."

Treasury Bills (T-bills)

These securities are fixed-principal, fixed-interest-rate government securities issued for the long term. They have a maturity of 30 years.

Treasury Bonds

These securities are marketable Treasury bonds whose value increases with inflation. These inflation-indexed $100 bonds are the only investment that guarantees that the investor's return will outpace inflation.

Treasury Inflation-Protected Securities (TIPS)

These securities are fixed-principal, fixed-interest-rate government securities issued for an intermediate term. They may be issued for 2, 3, 5, or 10 years, and they pay interest every 6 months.

Treasury Notes

7. Earnings per share (EPS) Recall that fundamental analysis assumes each stock has an intrinsic (or true) value based on its expected stream of future earnings and profitability. Therefore, a company's corporate earnings are a central factor in determining a stock's intrinsic value (which may be different from the current market price of the stock). The goal of fundamental analysis is to identify stocks that have a higher intrinsic value than the current market price. In other words, the goal of fundamental analysis is to identify undervalued stocks that have potential for future returns.

Two measures are especially important for evaluating stocks using fundamental analysis: a company's earnings per share (EPS) and the company's price/sales ratio (P/S ratio).

8. Price/sales ratio (P/S ratio) Recall that fundamental analysis assumes each stock has an intrinsic (or true) value based on its expected stream of future earnings and profitability. Therefore, a company's corporate earnings are a central factor in determining a stock's intrinsic value (which may be different from the current market price of the stock). The goal of fundamental analysis is to identify stocks that have a higher intrinsic value than the current market price. In other words, fundamental analysis can identify undervalued stocks that have potential for future returns.

Two measures that are especially important for evaluating stocks using fundamental analysis are a company's earnings per share (EPS) and price/sales ratio (P/S ratio).

These securities are non-marketable, interest-bearing bonds issued by the federal government and sold at face value. They are considered a low-risk savings product that earns interest while protecting you from inflation.

U.S. Government Savings Bonds

Calculate the EPS for each of the following hypothetical companies: (Hint: Round your answers to two decimal places.)

Use for next 3 questions

Each holder of common stock has proportionate authority to express an opinion or choice in matters affecting the company. This authority is known as ___ . Stockholders also vote to elect the company's board of ___ , which is a group of individuals that sets policy and names the principal officers of the company (management) who run the day-to-day operations of the corporation.

Voting rights ; directors

This type of order remains valid until the close of trading on Friday of the current week.

Week Order

15. Investing in bonds - Reasons to invest in bonds

Why Do Investors Include Bonds in their Portfolios?

These securities are municipal, corporate, or treasury bonds that are issued at a sharp discount from the face value and pay no annual interest. They are redeemed at full face value upon maturity.

Zero-Coupon Bonds

6. Fundamental analysis Fundamental analysis is a school of thought in market analysis that assumes each stock has ___ (or ___ ) value based on its expected stream of ___ earnings.

an intrinsic ; true ; future

Cash Dividends Most stocks pay dividends to shareholders. Cash dividends are distributions made in cash to holders of the stock. Cash dividends are the ___ that you receive while you own shares in the company. For most stocks, the firm's board of directors usually declares a dividend on a ___ basis. Dividends are typically paid out of a company's ___ , although during unprofitable times, the dividends might be paid from a company's ___ . Occasionally a company will borrow to pay the dividends to maintain its reputation for consistently paying dividends, in which case later profits can be used to repay any funds borrowed for the purpose of paying dividends.

current income ; quarterly ; current earnings ; cash reserves

A strong relationship usually ___ between a company's book value and its earnings and the market price of the company's stock. However, a stock's price is usually ___ than the company's book value per share. This is because investors anticipate earnings and/or dividends in the future, and they expect the market price to ___ even further. When a company's book value per share is ___ the stock's market price per share, then stock is probably undervalued.

does not exist ; higher ; rise ; greater than

In addition to the various Treasury securities, agency bonds are issued by individual federal agencies that are government-sponsored enterprises but stockholder owned. The federal government ___ the debt issued by these agencies. They are not as widely publicized as Treasury securities, and they pay a yield that is slightly ___ than comparable-term Treasury securities.

does not guarantee ; higher

The company with the ___ EPS is the most profitable. Therefore, which of these two companies is the most profitable?

higher ; P&L Broadcasting Company

Therefore, JL Chemicals stock ___ a good investment (that is, an undervalued investment) at the current market price of $20 per share.

is not

Company A: This company has issued a total of $15.9 billion in common stock. It is one of the largest companies in existence and is considered a blue-chip stock. The stock issued by company A is best classified as a ___ stock.

large-cap

4. Types of investments - Bonds What are Bonds? Bonds are ___ investments. When you purchase a bond, you become a ___ of a business or government.

lending ; creditor

Because bonds are generally ___ risky than stocks, bonds become more attractive as your investment time horizon gets ___ . This is because if you have a shorter time horizon (say, less than five years), you are more likely to be concerned primarily with ___ . In general, as you get closer to needing to use the money from your investments (for example, as you get closer to retirement), a ___ percentage of your portfolio should be dedicated to bonds.

less ; shorter ; preservation of you investment capital ; greater

A company's book value (also known as shareholder's equity) is the net worth of the company, which is determined by subtracting the company's total ___ from the company's total ___ .

liabilities ; assets

A company's P/S ratio indicates the number of dollars it takes to buy a dollar's worth of a company's annual revenues. In general, a stock with a ___ P/S ratio is a better investment than a stock with a ___ P/S ratio. As an investor, you should ___ companies with a P/S ratio greater than 1.5, and you should ___ companies with a P/S ratio less than 0.75.

lower ; higher ; avoid ; favor

Corporations and governments often use the proceeds from issuing bonds to finance expensive construction projects, to purchase costly equipment, or to help grow the business, as shown in the following diagram: Even though bonds guarantee a fixed rate of return in the form of interest payments, the market price of bonds can fluctuate with interest rates. Also, remember that bonds generally have a ___ potential for growth than stocks, and bonds generally have a ___ average long-term rate of return than stocks. If you desire a steady stream of income or if you will need to use your investment money in the near future, then bonds can be an effective way to ensure the ___ of your investment capital while obtaining some level of current income in the form of interest payments.

lower ; lower ; preservation

Fundamental analysis is generally ___ useful than technical analysis, which is another method of evaluating securities using statistics generated by market activity.

more

16. Types of bonds - U.S. government securities U.S. Treasury securities are the world's ___ investments, because the government has never defaulted on its debt. U.S. Treasury securities are backed by the "full faith, credit, and taxing power of the U.S. government," which practically guarantees timely payment of principal and interest to the investor.

safest

Fundamental analysis suggests that you ___ be able to identify some stocks that will outperform others, given the state of the economy. The aim of fundamental analysis is to identify sound stocks that are priced ___ what they ought to be. Fundamental analysis also suggests that you should consider investing only in companies that will be industry ___ in terms of profitability.

should ; below ; leaders

Company B This company has issued a total of $1.2 billion in common stock. This company has a modest degree of market capitalization, but it is larger than the smallest firms. The stock issued by company B is best classified as a ___ stock.

small-cap

13. Stock quotes - Looking up a stock price The price of a stock is largely influenced by supply and demand. When more people want to buy a stock, the price goes ___ . By contrast, when more people want to sell a stock, the price goes ___ .

up ; down