Existing Auction Sites, Such as EBay, Are Inherently More Valuable

question 61

Multiple Choice

Existing auction sites, such as eBay, are inherently more valuable to customers than new auction sites.This basic economic fact is called a(n) _____.

• A) deadlock effect
• B) lock-in effect
• C) smoke-and-mirrors effect
• D) anti-pattern effect

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Definitions:

Shares Outstanding

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares.

Buy Back

An agreement where a seller commits to repurchase the product from the buyer after a specified period or under certain conditions.

Shares Outstanding

The total number of shares of a corporation that are owned by shareholders, including those held by institutional investors and restricted shares held by company insiders.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders but not retired, and are available for reissuance.