To Say That a Stock Price Is a Signal Means

question 184

Multiple Choice

To say that a stock price is a signal means that:

• A) society can determine the value of a firm.
• B) people transfer firm ownership via the signals.
• C) lower stock prices imply better value.
• D) speculative bubbles can be avoided.

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Definitions:

Information Technologies

The study and application of computers and telecommunications equipment to store, retrieve, transmit, and manipulate data.

Control

The ability to influence or direct people's behavior or the course of events.

Flexibility

The ability to adapt to new, different, or changing requirements and situations in various contexts, including work, personal life, and physical abilities.

Algorithmic Management

Using algorithms’ data processing power to extract information from big data to allow managers to oversee workers in an optimized manner at a large scale.