Which one of the following statements is incorrect? The price of a stock trading in the market (e.g., AMAZON) arises from interactions of buyers and sellers in the stock market. New information about overall economic trends, industry-related events, political stability, and investor confidence are all reflected in the trading price of a stock. The initial price of a stock (when a company sells shares in the market the first time) is set by the listing company and its advisors. Earnings announcement of a company has no impact on its stock price.