Other Things Being Constant, When a Business Issues More Stock

question 76

Multiple Choice

Other things being constant, when a business issues more stock, what happens?

• A) The supply of the stock is greater and thus the price will fall.
• B) The supply of the stock is less and thus the price will rise.
• C) The demand for the stock is greater and thus the price will rise.
• D) The demand for the stock is less and thus the price will fall.

---

Definitions:

Homeostasis

The body’s tendency to maintain the conditions of its internal environment by various forms of self-regulation.

Positive Feedback

A process in which the end products of an action cause more of that action to occur in a feedback loop, amplifying the original action.

Drive Theory

is a psychological concept suggesting that behavior is motivated by the desire to meet basic biological needs or drives, such as hunger, thirst, or sex.

Psychologically Oriented

Focused or directed towards understanding the mental processes and behavior from a psychological perspective.