Firms are more willing to issue new stock in a secondary stock offering when the market price of their outstanding shares is relatively

Question

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Firms are more likely to issue new stock in a secondary stock offering when the market price of their outstanding shares is high. This is because the firm can raise more money by selling shares at a higher price, and also because a high stock price suggests that there is strong demand for the company's shares.

Firms Are More Willing to Issue New Stock in a Secondary