How Many Times Can a Corporation's Shares Be Sold in the Primary

question 20

Multiple Choice

How many times can a corporation's shares be sold in the primary market?

• A) twice
• B) once
• C) quarterly
• D) once per year

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Definitions:

Increasing Returns to Scale

A situation in which a proportional increase in all inputs results in a more than proportional increase in output, demonstrating economies of scale.

Law of Diminishing Returns

An economic principle stating that, holding all else constant, as one input variable is increased, there is a point at which the marginal per unit output starts decreasing.

Diseconomies of Scale

The phenomenon where an increase in production leads to higher per-unit costs, often due to inefficiencies associated with scale.