Corporations receive funds when their stock is sold in the primary market. Why do corporations pay attention to what is happening to their stock in the secondary market?
What will be an ideal response?
The existence of the secondary market makes their stock more liquid and the price in the secondary market sets the price that the corporation would receive if they choose to sell more stock in the primary market.
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Employment protection laws make it harder for employees to lose their jobs and as a result, these laws reduce structural unemployment
Indicate whether the statement is true or false
In Figure 9-13, a movement of equilibrium from point D to point C could be caused by a(n)
a.
decrease in supply from S2 to S1 in response to economic profits following a decrease in demand from D2 to D1
b.
increase in short-run supply from S1 to S2
c.
increase in supply from S1 to S2 in response to economic profits caused by an increase in demand from D1 to D2
d.
an increase in demand from D1 to D2 in the short run