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) B or C, depending on the amount of stock to be issued

Question

Quizplus · Accepted Answer

The price of newly issued stock should be about the same as the market price of the firm's outstanding stock to ensure fairness and to avoid arbitrage opportunities.

The Price of Newly Issued Stock Should Be ____ the Market