Question

What do you think is likely to happen to the average price of a share if...

What do you think is likely to happen to the average price of a share if the NYSE decided to close every Friday and Monday to provide their workers longer weekends.

Homework Answers

Answer #1

Average price of the share is decided by the demand and supply conditions in the stock market. when there will be closing on Friday and Monday, there there will be more pressure on trading on other working days. But, these pressure will come from the demand side as well as supply side and volume of trade will increase. As a result, there can be observed as the upward movement in the average price of a share due to higher intensity of trade on the lesser number of working days. So, average price will increase.

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