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.

Question

Quizplus · Accepted Answer

When the market is more optimistic about a firm, the demand for its shares will increase, which will drive up the share price. As a result, the firm will need to issue fewer shares to raise the amount of funds needed, as each share is now worth more.

When the Market Is More Optimistic About a Firm, Its