The price of newly issued stock should be ____ the market price of the firm's outstanding stock.
A)about the same as
B)much more than
C)much less than
D)either much more than or much less than, depending on the amount of stock issued

Question

Quizplus · Accepted Answer

The price of newly issued stock is typically set to be about the same as the market price of the firm's outstanding stock to ensure fairness and market consistency. Pricing it similarly helps in attracting investors by offering the new shares at a market-competitive rate.

The Price of Newly Issued Stock Should Be ____ the Market