If the Announcement of a Share Sale Does in Fact

question 25

True/False

If the announcement of a share sale does in fact trigger a decline in share price, this reinforces the effects of flotation costs incurred with new equity issues.Further, this implies a larger break in the MCC schedule.

---

Definitions:

Cost Constraint

The principle that the cost of providing financial information should not outweigh the benefits that the information provides to users.

Generating Revenue

The process by which a company produces income from its operations, sales, or services.

Consumed Assets

Assets that have been used and cannot be restored or recovered, typically expensed in the period they are used.

Services Used

Consumption of services in operations, such as consulting, maintenance, or legal services, recorded as expenses.