The correct answer is: A. the company’s financial performance
In an efficient market, the price of a stock reflects all available information about the company, including its financial performance. This means that the price of a stock is already determined by the market and cannot be easily manipulated by individuals or groups.
The past price of a stock is not necessarily indicative of its future performance. In fact, the past price of a stock can be misleading, as it may not reflect the company’s current financial situation or future prospects.
The demand for a stock is also not necessarily indicative of its value. A stock may be in high demand due to speculation or hype, but this does not mean that the stock is actually worth its price.
The past price and traded volumes of a stock can be useful for investors in understanding the stock’s historical performance and volatility. However, these factors should not be used as the sole basis for making investment decisions.
In conclusion, the price of a stock in an efficient market reflects the company’s financial performance. This means that the price of a stock is already determined by the market and cannot be easily manipulated by individuals or groups.