Which of the Following Is True About the Impact on Market

question 44

Multiple Choice

Which of the following is true about the impact on market price of a security when a company makes an announcement and the market has discounted the news?

• A)The price will change a great deal; even though the impact is primarily in the future, the
• Future value is discounted to the present.
• B)The price will change little, if at all, since the impact is primarily in the future.
• C)The price will change little, if at all, since the market considers this information
• Unimportant.
• D)The price will change little, if at all, since the market considers this information untrue.
• E)The price will change little, if at all, since the market has already included this information
• In the security's price.

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Definitions:

Union Rights

The law-based privileges and safeguards given to labor unions and their affiliates, encompassing the ability to unionize, negotiate agreements as a group, and participate in industrial actions.

Outsourcing Clause

A provision in a collective bargaining agreement that limits or regulates the extent to which an employer can contract out work to third parties.

Successorship Clause

A provision within a collective bargaining agreement that maintains the union's rights and preserves the workers' terms of employment when the business changes ownership.

Grievance Procedures

Refers to the formal steps taken by an organization to address complaints or disputes from employees.