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What Most Likely Happened to the Stock for Apple Because

question 171

Essay

What most likely happened to the stock for Apple because of the iPhone and iPad? Explain using a demand and supply graph.


Definitions:

Rights Offering

A method by which a company raises additional capital by giving existing shareholders the right to buy new shares at a discount.

Subscription Price

The fee that investors pay when subscribing to a new issue of securities.

Market Price

This refers to the current price at which an asset or service can be bought or sold in the market.

Dutch Auction

A method for pricing shares (or other assets) where the price is reduced until all offered shares are sold to bidders, effectively finding the market clearing price.

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