If You Are an Investor That Owns Shares in a Firm

question 72

Multiple Choice

If you are an investor that owns shares in a firm that you believe is about to issue additional equity,then you would expect the price of your shares to

• A) increase.
• B) be unaffected.
• C) decrease.
• D) all three of the above could happen with equal probability.

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Definitions:

Federal Budget

The government's estimate of revenue and spending for a fiscal year, reflecting the economic priorities of the federal government.

Military Powers

The authority and capability of a state to use its armed forces to achieve its objectives.

Unilateral Use

Refers to actions or decisions made by a single nation or entity independently, without consultation or agreement with others.

Economic Recession

A period of temporary economic decline during which trade and industrial activities are reduced, often identified by consecutive quarters of GDP decline.