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

Question

Quizplus · Accepted Answer

The marginal investor is the one who is willing to buy or sell the stock at the current price, and their actions can influence whether the stock price goes up or down. Therefore, their decisions ultimately determine the price at which the stock will trade.

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