All Else Equal, New Shareholders Will ____ the Capital Gains

question 20

Multiple Choice

All else equal, new shareholders will ____ the capital gains of existing shareholders.

• A)dilute
• B)hold constant
• C)increase
• D)All of the above
• E)It is impossible to tell.

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Definitions:

Golf Club

A facility equipped for playing golf, often including a course with 18 holes and a clubhouse.

Tennis Racket

A sporting good used to strike a tennis ball in the game of tennis, typically consisting of a handled frame with an open hoop across which a network of strings is stretched.

Perfectly Competitive System

A market structure where many firms offer a homogeneous product or service, with no single company influencing the market price.

Marginal Cost

The expense increase associated with creating an additional unit of a product or service.