Evidence on Stock Prices Finds That the Sudden Death of a Chief

question 30

Multiple Choice

Evidence on stock prices finds that the sudden death of a chief executive officer causes stock prices to fall and the sudden death of an active founding chief executive officer causes stock price to rise. This contrary evidence happens because:

• A) markets are inefficient and unsure of the real value of the events.
• B) death is inevitable and market prices are random.
• C) things simply happen.
• D) the value of the founding executive was a negative to the firm.

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Definitions:

Public Notice

An official announcement issued to the public through various media outlets to inform about legal proceedings, government actions, or other significant matters.

Third Parties

Individuals or groups besides the two involved in a transaction or legal case, often indirectly affected by the outcome.

Security Interest

A rephrased definition: A financial security provided by a debtor to a creditor as a guarantee for repayment of a loan, often involving a lien on an asset.

Attachment

A legal procedure by which a court of law, at the request of a creditor, designates specific property owned by the debtor to be transferred to the creditor, or sold for the benefit of the creditor.