Which of the Following Factors Does Not Affect the Initial

question 87

Multiple Choice

Which of the following factors does not affect the initial market price of a share?

• A)the company's anticipated future net income
• B)the legal value of the share
• C)the current state of the economy
• D)the expected dividend rate per share

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Definitions:

Reverse Auctions

Auctions in which one buyer, usually an organization, seeks to buy a product or a service, and suppliers submit bids; the lowest bidder wins.

Forward Auctions

An auction in which several buyers bid competitively for a seller's good or service, with the price increasing incrementally until the highest bid is reached.

Lower Prices

A strategy where a seller reduces the cost of their goods or services to attract more customers or undercut competitors.

Higher Prices

An economic condition signifying an increase in the cost of goods and services in the market.