A Tax Bill Introduced in the House of Representatives Is

question 1

Multiple Choice

A tax bill introduced in the House of Representatives is then

• A)referred to the House Ways and Means Committee for hearings and approval.
• B)referred to the full House for hearings.
• C)forwarded to the Senate Finance Committee for consideration.
• D)voted upon by the full House.

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Definitions:

Efficient Markets Hypothesis

The theory that all available information is already reflected in stock prices, implying that it is impossible to consistently achieve higher returns.

Semistrong-Form

A theory related to the Efficient Market Hypothesis that asserts all public information is already reflected in stock prices, along with historical information.

Weak-Form

In finance, a hypothesis suggesting that past stock prices and volumes are not predictive of future stock prices.

Weak Form

Assumes that all information contained in past price movements is fully reflected in current market prices. Thus, information about recent trends in a stock’s price is of no use in selecting a stock.