When Making an Issue of Shares to the Public

question 33

Multiple Choice

When making an issue of shares to the public:

• A)it is generally easy to set the price at which the shares will be issued.
• B)it is generally difficult to set the price at which the shares will be issued.
• C)if the share price is set too low, the issue will be undersubscribed.
• D)if the share price is set too high, the issue will be oversubscribed.

---

Definitions:

U.S. GDP

U.S. Gross Domestic Product reflects the total monetary or market value of all the finished goods and services produced within the United States' borders in a specific time period.

Income Inelastic

A characteristic of a good whose demand does not significantly change as the income of consumers changes.

Price Inelastic

Describes a situation in which the demand for a good or service is relatively unresponsive to changes in price.

Price Inelastic

Describes a situation where the quantity demanded of a good does not significantly change when its price changes.