Which of the following factors does not affect the initial market price of a share?
A)the company's anticipated future net income
B)the legal value of the share
C)the current state of the economy
D)the expected dividend rate per share

Question

Quizplus · Accepted Answer

The legal value of the share, often referred to as the par value, does not affect the initial market price of a share. Market prices are influenced by factors like anticipated future net income, the state of the economy, and expected dividend rates, rather than the nominal or par value assigned to the shares.

Which of the Following Factors Does Not Affect the Initial