What are the two critically important functions for corporate financing performed by stock exchanges?
First, by providing a secondhand market for stocks, stock exchanges make individual investment in a company much less risky. Investors know that if they need money, they can always sell their stocks to other investors or to stock market specialists at the current market price. This reduction in risk makes it far easier for corporations to issue new stocks.
Second, the stock market determines the current price of the company's stocks. That, in turn, determines whether it will be difficult or easy for a corporation to raise money by selling new stocks.
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What happens to U.S. GDP when foreign countries experience prosperity?
A) It increases because the United States will export more product to those countries. B) It does not change because U.S. GDP is not affected by other countries' prosperity. C) It decreases because the foreign countries will be able to export more at a lower cost. D) It decreases because the foreign countries will now buy more of their own products.
If Healthy Nuts contractually requires distributors who purchase Healthy Nuts' snack packs to also purchase Healthy Nuts' large -sized mixed nuts tins, this is an example of ________.
A) a requirements contract B) a tying arrangement C) territorial confinement D) exclusive de
A merger will usually be challenged if which of the following is expected to occur as a result of the merger?
A) competition remains after the merger B) a price decrease C) a decrease in consumer surplus D) an increase in consumer surplus
Based on the information in Scenario 15.7. You should
A) keep the wine in barrels. B) sell the wine now, to get $18 per bottle in profit. C) keep the wine unless you expect the price to fall below $18 per bottle. D) keep the wine unless you expect the price to rise above $22 per bottle. E) not do anything until you find out what the interest rate is.