When a Corporation Issues Additional Shares of Common Stock to the General

question 73

Multiple Choice

When a corporation issues additional shares of common stock to the general public, they do so:

• A) In the primary market.
• B) Through a dealer in the secondary market.
• C) Through a broker in the secondary market.
• D) Only through the OTC market.
• E) Only through the private markets.

Recognize how the availability of substitutes affects the elasticity of demand.

Understand the concept of cross elasticity of demand and its implications for goods being substitutes or complements.

Identify the determinants of the elasticity of demand.

Calculating and understanding income elasticity of demand.

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Definitions:

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