Some Company Executives Become So Committed to a Current,profitable Technology

question 27

True/False

Some company executives become so committed to a current,profitable technology that they fail to provide adequate levels of investment in new,apparently riskier technologies.

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Definitions:

Market Value

The existing cost at which a commodity or service is available for buying or selling in the market.

Shares Outstanding

The total number of shares that are currently owned by all shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by dividing each share, which may lower the stock price and make shares more affordable to investors.

Market Value

The present cost at which a service or asset is available for purchase or sale on the open market.