Network Effects Refer to the ________

question 48

Multiple Choice

Network effects refer to the ________.

• A) increased value of a product or service resulting simply because there are more people using it
• B) process of selling a product or service through well established networks and consumer chains
• C) value obtained from providing fine services to a complex product or service
• D) increased value attached with a product or service that can be used for networking purposes

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Definitions:

Security Offering

The process of making new shares of a company available for sale to the public or specific investors, often to raise capital.

Shares Outstanding

The total number of shares of a corporation's stock that are owned by shareholders, including restricted shares.

Security

A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Warrants

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a security at a specific price before a certain date.