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

Question

Quizplus · Accepted Answer

The marginal investor is the one who is willing and able to buy or sell at the current market price, and their actions determine the price at which the stock will trade. Therefore, when a new issue of stock is brought to market, the price will be determined by the marginal investor.

When a New Issue of Stock Is Brought to Market,the