a new issue of stock is brought to market, it is the marginal investor who determines the price at which the stock will trade.

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When a new stock is brought to market, the marginal investor (the investor who is willing to buy or sell at the current price) determines the price at which the stock will trade. This is because the price in the market is set by supply and demand, and the price will continue to adjust until the marginal investor is satisfied with the price.

A New Issue of Stock Is Brought to Market, It