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if a company received some negative publicity (rat found in drink), demand for that companys stock would fall. this means the price/value of that stock would fall rise rewatch next question
In the stock market, when there is negative publicity (like finding a rat in a drink for a company), it reduces the demand for the company's stock. According to the basic principle of supply - and - demand in economics, when demand for a good (in this case, stock) decreases while supply remains relatively constant (in the short - term, the number of shares available doesn't immediately change due to negative publicity), the price of that good (stock price) will fall.
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