You own shares in a start-up internet company.If the company announces the development of a valuable new application program,but the program will not be put on the market for at least a year,then the price of your shares will ________,holding all other factors constant.

Question

Quizplus · Accepted Answer

The announcement of a valuable new application program is likely to increase investors' expectations for the future success and profitability of the start-up company. This could potentially attract new investors and increase demand for the company's shares, driving up the price. However, since the program will not be put on the market for at least a year, the price increase may not be immediate or significant, and may be influenced by other factors as well. Nonetheless, in the absence of any negative news or developments, it is reasonable to expect that the price of the shares will increase over time as the market anticipates the launch of the new program.

You Own Shares in a Start-Up Internet Company