Going Along with the Crowd in Order to Avoid Rejection

question 54

Multiple Choice

Going along with the crowd in order to avoid rejection is called

• A)emotional influence.
• B)normative influence.
• C)cohesion-based influence.
• D)informational influence.

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Definitions:

Subscription Price

The price at which existing shareholders are allowed to buy additional shares of a company's stock in a rights issue, usually at a discount to the current market price.

Market Price

The market rate at which a service or asset can currently be purchased or sold.

Underwriting Spread

The underwriting spread refers to the difference between the price an underwriter pays to the issuer of a security and the price at which it sells the security to investors.

Issue Costs

Expenses associated with the issuance of new securities, including underwriting, legal, and registration fees.