Which of the Following Is True About the Impact on Market

question 35

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, since the impact is primarily in the future.
• C) The price will change little, since the market considers this information unimportant.
• D) The price will change little, since the market considers this information untrue.
• E) The price will change little, since the market has already included this information in the security's price.

---

Definitions:

Code Of Ethics

A set of principles designed to guide the conduct of members within an organization, ensuring professional behavior and decision-making.

Formal Statement

An official, structured declaration or communication, often documented, which articulates specific information or positions.

Long-range Goals

Objectives or aims set by an individual or organization that are intended to be achieved over an extended period, often several years or more.

Long-term Planning Tools

Instruments or methodologies used to map out a company's long-term goals, strategies, and resource allocation.