Multiple Choice
When a firm announces an upcoming seasoned stock offering, the market price of the firm's existing shares tends to:
A) increase.
B) decrease.
C) remain constant.
D) respond, but the direction of the response is not predictable as shown by past studies.
E) decrease momentarily and then immediately increase substantially within an hour following the announcement.
Correct Answer:
Verified
Correct Answer:
Verified
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