Answer to Question #221310 in Macroeconomics for Nokubonga

Question

What is the effect on the markets when supplies under invest in their businesses

Answer 1

EXPLANATION

If a stock is doing well, a company might be more inclined to issue more shares because they believe they can raise more capital at a higher value. The stock market performance also affects a company's cost of capital.In any case, when shares fall, the value decreases, which can lead to funding problems