Consider a firm in a perfect market with 80 shareholders, including you, each holding 1 share valued at $10. Additionally, I own 20 shares (for a total of 100 shares) and am trying to fire management. To put me at ease, management offered to buy my 20 shares at $9 per share. How does this change the value of your share?

Answer rating: 100% (QA)

In a perfect market the value of a share is determined by the interaction of supply and demand The p... View the full answer