The option to make additional investments should earlier investments prove to be successful is known as a(n):

Question

Quizplus · Accepted Answer

The option to make additional investments is known as a follow-on investment option. This option gives investors the flexibility to invest more in a successful investment opportunity. Expansion option refers to the option of expanding a project or operation if it is profitable, while abandonment option refers to the option of ending a project if it becomes unprofitable. Flexibility option is a generic term that can refer to any option that provides flexibility in a given situation.

The Option to Make Additional Investments Should Earlier Investments Prove