Most Financial Economists Attribute the Drop in the Price of Equity

question 26

Multiple Choice

Most financial economists attribute the drop in the price of equity subsequent to the announcement of a new issue to

• A)an increase in the supply of shares.
• B)information effect.
• C)an increase in the supply of shares and information effect.
• D)neither an increase in the supply of shares nor information effect.

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Definitions:

Hunger-Dampening

The process or an effect that reduces or suppresses the feeling of hunger.

Fat Cells

Cells that store energy in the form of fat, also known as adipocytes; they are found in the adipose tissue.

Anorexia Nervosa

An eating disorder in which a person (usually an adolescent female) diets and becomes significantly (15 percent or more) underweight, yet, still feeling fat, continues to starve.

Drastic Weight-Loss

involves a significant reduction in body weight in a short period of time, which can be due to various factors including diet, exercise, or medical conditions.