What does a steep incline in the line graph representing the stock prices indica

Practice Questions

Q1
What does a steep incline in the line graph representing the stock prices indicate?
  1. Market crash
  2. Investor confidence
  3. Economic downturn
  4. None of the above

Questions & Step-by-Step Solutions

What does a steep incline in the line graph representing the stock prices indicate?
  • Step 1: Look at the line graph showing stock prices over time.
  • Step 2: Identify the part of the graph where the line goes up sharply.
  • Step 3: Understand that a steep incline means the stock prices are increasing quickly.
  • Step 4: Realize that when stock prices rise quickly, it usually means investors are feeling positive about the company or market.
  • Step 5: Conclude that high investor confidence often leads to more people buying stocks, which drives the prices up.
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