When stock market values are relatively high:
A) you will tend to observe more IPOs and new stock issuances.
B) you will tend to observe more bond issuances.
C) you will tend to observe firms raising more money from venture capitalists.
D) you will tend to observe firms borrowing more money from banks.

Question

Quizplus · Accepted Answer

When stock market values are relatively high, companies can raise more capital through issuing new shares (IPOs or secondary offerings) at a higher price, making equity financing more attractive compared to debt financing or seeking venture capital.

When Stock Market Values Are Relatively High