Explore BrainMass

Explore BrainMass

    Corporate Financial Management Issues

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Suppose buy orders are placed for twice as many shares of a stock as the number of shares offered for sale in a one-hour period. What would be the relationship (higher, lower, or the same) between the reported trading price just before and just after that one-hour period, assuming no other events occurred?

    What kind of experience have you had with stock purchases?

    Why do many business managers feel that ethical behavior is essential to the profitability and survival of their firm?

    Have you had to face an ethical dilemma in your working life? How did you or would you deal with it?

    © BrainMass Inc. brainmass.com June 4, 2020, 3:28 am ad1c9bdddf
    https://brainmass.com/business/finance/corporate-financial-management-issues-516804

    Solution Preview

    Assuming no other events occurred, this would increase the trading price just before due to increased demand and would likely decrease the price just after. The actual determining factor as to what effect it would have just after the trading period would be based on additional market factors, but we could reasonably assume that it would decrease due to the increase in supply available and the close of the trading window (excess surplus = decline in price).

    I have had several personal and professional experiences with stock prices. As an individual investor, I have ...

    Solution Summary

    This solution provides detailed explanations for each of the corporate financial management issues presented.

    $2.19

    ADVERTISEMENT