All Other Things Being Equal, When Banks Issue New Stock

question 18

Multiple Choice

All other things being equal, when banks issue new stock, they

• A) increase reported earnings per share.
• B) decrease their ability to absorb operating losses.
• C) dilute the ownership of the bank.
• D) A and B

---

Definitions:

Pulitzer Prize

The Pulitzer Prize is an award for achievements in newspaper, magazine and online journalism, literature, and musical composition within the United States.

Publisher

An individual or company engaged in the preparation and issuing of printed, digital, or recorded material for public sale or distribution.

Simple Random Sample

A subset of individuals chosen from a larger set where each individual has an equal probability of being selected.

General Appeal

The widespread attractiveness or interest that something has to a large audience or demographic.