If You Own 800 Shares (3% of a Corporation's Stock)and

question 43

Multiple Choice

If you own 800 shares (3% of a corporation's stock) and the corporation issues 10,000 new shares,how many of the new shares can your purchase under preemptive right?

• A)0
• B)300
• C)800
• D)1,100

Grasp the impact of technological innovations on the banking industry and the resultant shifts in customer interactions with banks.

Understand regulatory responses to financial crises and their intended effects on preventing future crises.

Understand the role and impact of creative project funding platforms like Kickstarter.

Recognize the characteristics and functions of different financial institutions and services.

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Definitions:

Marginal Revenue Product Curve

A graphical representation showing how the revenue generated from selling an additional unit of a good or service changes as more units are produced.

Purely Competitive Seller

A firm operating in a market where it must accept the prevailing market price and cannot influence it.

Law of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other inputs remain at a constant.

Market Value

The current price at which an asset or service can be bought or sold in the open market.