The Idea of First Movers Being Completely Replaced by Second

question 164

True/False

The idea of first movers being completely replaced by second movers and the resulting disappearance of first movers from the marketplace is a myth.

---

Definitions:

Interest Rate

An interest rate is the percentage at which interest is paid by borrowers for the use of money that they borrow from a lender.

Strip Bond

A debt security that is derived from the coupon and principal payments of a bond, which are separated ("stripped") and sold as individual zero-coupon bonds.

Compounded Semi-Annually

Interest calculated on the principal and previously earned interest twice a year.

Quarterly Compounded

An interest calculation method where interest is added to the principal every quarter, increasing the amount of interest earned or paid.