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Share Issuance Quiz

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Questions and Answers

What is the primary purpose of issuing shares?

To raise capital for the company (correct)

To reduce the company's debt

To increase the company's expenses

To decrease the company's liquidity

What is the term for the value assigned to a share of stock?

Par value (correct)

Face value

Market value

Book value

What is a possible consequence of a company issuing too many new shares?

Dilution of existing shareholders' ownership (correct)

Reduction in company's liabilities

Increase in stock market price

Boost in employee morale

Share Issuance Quiz

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Questions and Answers

What is the primary purpose of issuing shares?

What is the term for the value assigned to a share of stock?

What is a possible consequence of a company issuing too many new shares?

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