Asked by
Latrecia Smith
on Oct 20, 2024
Verified
When the market is more optimistic about a firm, its share price will ________; as a result, it will need to issue ________ shares to raise funds that are needed.
A) rise; fewer
B) fall; fewer
C) rise; more
D) fall; more
Share Price
The cost of a single share of a company's stock, determined by market demand and supply.
Raise Funds
The process of gathering financial resources from various sources to support a particular project, venture, or cause.
Optimistic
A disposition or belief that good things will happen and that investment risks are more likely to result in positive outcomes.
- Gain insight into the connection between risk and return within financial markets.
Verified Answer
CR
Learning Objectives
- Gain insight into the connection between risk and return within financial markets.