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:

Cheeks

Parts of an object or tool flanking other components, typically used in the context of machinery or the human face.

Rounded Corners

Corners that are shaped into a smooth, rounded angle to improve appearance, handling, or safety.

Malleable Iron

A type of cast iron that has been treated to improve its ductility and toughness, making it less brittle and more capable of being shaped or bent without breaking.

Abbreviation

A condensed version of a word or phrase.