Other Things Being Constant, When a Firm Sells New Shares

question 139

Multiple Choice

Other things being constant, when a firm sells new shares of stock, the

• A)supply of the stock increases and the price decreases.
• B)supply of the stock decreases and the price increases.
• C)demand for the stock increases and the price increases.
• D)demand for the stock decreases and the price decreases.

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Definitions:

Subduction Zone

A region where one tectonic plate moves under another, often leading to volcanic activity and earthquakes.

Metamorphosed Rocks

Rocks that have undergone a change in mineral composition and texture due to extreme heat and pressure conditions.

Wedge-Shaped Zone

A geological area characterized by its wedge or triangular shape, often indicating tectonic activity or sediment accrual at plate boundaries.

Accretionary Prism

A geological structure formed by the accumulation of sedimentary and oceanic plate material scraped off a subducting plate, typically found at convergent plate boundaries.