World Wide Delivery Service Corporation develops a way to speed up its deliveries and reduce its costs. Which of the following would we expect?
A)This would raise the demand for existing shares of the stock, causing its price to rise.
B)This would decrease the demand for existing shares of the stock, causing its price to fall.
C)This would raise the supply of the existing shares of stock, causing its price to rise.
D)This would raise the supply of the existing shares of stock, causing its price to fall.

Question

Quizplus · Accepted Answer

If World Wide Delivery Service Corporation develops a way to speed up its deliveries and reduce its costs, it is likely to result in increased profits and growth potential, which would likely attract more investors. This increase in demand for the company's shares would lead to an increase in the price of its stock.

World Wide Delivery Service Corporation Develops a Way to Speed