Financial Markets. In most years new issues of stock are a tiny fraction of total stock market

Question:

Financial Markets. In most years new issues of stock are a tiny fraction of total stock market trading. In other words, secondary market volume is much greater than primary market volume. Does the fact that firms only occasionally sell new shares mean that the stock market is largely irrelevant to the financial manager? Hint: How is the price of the firm’s stock determined, and why is it important to the financial manager?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Study Guide To Accompany Fundamentals Of Corporate Finance

ISBN: 9780073012421

5th Edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

Question Posted: