If a firm sells a total of 100 shares of stock,then
A)the supply of,and demand for,those shares determine the price per share.
B)each share represents ownership of 1 percent of the firm.
C)the firm is engaging in equity finance.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the statements are correct. The supply and demand of the shares determine the price, each share represents a percentage of ownership in the firm, and selling shares is a type of equity financing.

If a Firm Sells a Total of 100 Shares of Stock,then