A company is about to go public with an IPO (initial public offering) and the company founders keep a significant portion of the company's stock. This is an example of signaling.
A public offering in which shares of a firm are sold to institutional investors and typically also to retail investors is known as an initial public offering (IPO) or stock launch. Typically, one or more investment banks will underwrite an IPO and coordinate the shares' listing on one or more stock exchanges.
Underpricing in the IPO market as a signal Investors are aware that only the best can recover the cost of this signal from later issues, which is why some organizations with the best prospects decide it is preferable to indicate their type by underpricing their initial issue of shares.
IPOs assist businesses in raising capital without turning to banks or other financial institutions, which could impose exorbitant interest rates on loans. Additionally, it enables current investors to exit the business without paying capital gains tax.
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Answer:
d. disband permanently or take a temporary break.
Explanation:
Adjournment stage is the fifth and last stage of group development. The group wraps up work and is disbanded. At this stage team members celebrate their successes and get closure in preparation for the next project.
Team members may feel low motivation and a sense of loss because of bonds they had formed. Some people refer to this stage as the mourning stage, and team members need to celebrate their achievements to boost moral.
Answer:
The correct answer is: electronic marketplace.
Explanation:
An electronic marketplace gathers sellers and suppliers through the worldwide web who offer their products virtually to fasten the purchase process and reach a larger number of consumers. These characters have a well-structured business even if it is not physical. Their objective is to give consumers to shop online without the need of going to the store in person.
Answer: more; externality; market power.
Explanation:
Bakers are much (more) likely to supply pastries to the market if property rights are not enforced.
a. A manufacturing plant dumps chemical waste into a nearby river, poisoning the water supply for a small town downstream. - Externality
Externality, refers to the benefit s or costs that someone else incurs based on the economic decision of another person. In this case, this is a negative externality as the small town bears the cost of the production activities of the company.
b. A single public utilities company is responsible for supplying electricity for an entire state. As a result, the utilities company can set the price of electricity - Market power
Market power is when a firm is able to dictate the price and can then raise the price. This brings about the reduction in output as well. Since the single public utilities company is responsible for supplying electricity for an entire state, the company is enjoying monopoly power or market power.
