Question

When the market is more optimistic about a firm, its share price will ______; as a result, it will need to issue _______ shares to raise funds that are needed. a) rise; fewer b) fall; fewer c) rise; more d) fall; more

Answer 1

Answer:

a) rise; fewer

Explanation:

In the case when the market is more optimistic so the price of the share would be increased that results in the issuance of the few shares to raise the funds that are required keeping all other constant.

Therefore in the given situation, the option a is correct

Hence, the same is to be considered

Thus, all the other options are incorrect