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Corporate Finance

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Supply and Demand on Auction Markets

CORPFN-CNZD3K

A stock trader received a hot tip about an up-and-coming technology company's new software and began encouraging all of his clients to purchase available shares.

As the market began to notice the increase in trades on the stock, what probably happened to the stock price, and why?

A

Price per share decreased because the supply of shares decreased.

B

Price per share increased because the supply of shares decreased.

C

Price per share decreased because the supply of shares increased.

D

Price per share increased because the supply of shares increased.