Would a corporation seeking to raise capital sell its new shares on the stock market? If not, why not?
A corporation seeking to raise capital through the issuance of new stock rarely uses a stock market, as stock markets deal in previously issued, not new shares. A corporation seeking to raise capital by selling new stock would use the services of an investment bank, which deals in new shares of stock.
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"Banks make a profit by paying depositors a high rate to attract funds and making loans at a low rate to encourage borrowing." Is the previous statement correct or not?
What will be an ideal response?
If a consumer always buys goods rationally, then
A) the marginal utility per dollar spent on all goods will be equal. B) the marginal utility of the different goods consumed will be equal. C) the average utilities of the different goods consumed will be equal. D) the total utilities of the different goods consumed will be equal.