In Regard to New Issues of Common Stock, Economists Have

question 30

Multiple Choice

In regard to new issues of common stock, economists have found that the announcement of a new issue:

• A) results in a decline in the stock price.
• B) causes the stock price to rise.
• C) has no effect on the stock price.
• D)increases the market value of the stock but only temporarily.

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Definitions:

Akers

Refers to Ronald L. Akers, a criminologist known for his work in social learning theory, which explains how people learn to engage in crime.

Social Learning

The process of acquiring behaviors and norms through observing and imitating others within a social context.

Stigmatized

This term describes individuals or groups that are labeled by society as being undesirable or discredited, often leading to discrimination and exclusion.

Ostracized

Excluded from a group or society with general consent, often as a form of social punishment.