When the market is more optimistic about a firm, its share price will ; as a result, it will need to issue _ shares

Question

jarptica [38.1K]

3 years ago

8

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.

Business

1 answer:

galben [10] · Answer 1 · 2022-04-15T17:55:42+03:00

Answer:

The answer is rise, fewer

Explanation:

When the market is more optimistic about a firm, its share price will RISE OR INCREASE as a result, it will need to issue FEWER shares to raise funds that are needed.

Share price can increase as a result of positive economic environment. For example, the company is making consistent profit, prevailing economic or environmental conditions are favouring the company.

When this happens, company will issue lower shares to raise fund because many investors will be looking to buy their shares.

When the market is more optimistic about a firm, its share price will ______; as a result, it will need to issue _______ shares

When the market is more optimistic about a firm, its share price will ; as a result, it will need to issue _ shares