When a Company Releases Material Information That May Affect Its

question 38

True/False

When a company releases material information that may affect its share price,the ASX halts trading for at least 30 minutes so that the market may respond to this news and adjust prices.

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Definitions:

Willingness

The readiness or propensity of an individual to engage in a particular action or to accept a certain offer.

Law of Demand

A fundamental principle stating that, ceteris paribus, as the price of a good increases, the quantity demanded of that good decreases, and vice versa.

Product Price

The cost for which a single item or service is sold to consumers, which can consider production, marketing, and distribution expenses.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price.