If the Stock Market Is Efficient, Then

question 21

Multiple Choice

If the stock market is efficient, then

• A)the best time to buy a stock is on the ex-dividend date.
• B)the best time to buy a stock is on the cum-dividend date.
• C)the best time to buy a stock is when a firm's board of directors announce that they plan to execute a reverse split.
• D)none of the above.

---

Definitions:

PCjr

A home computer introduced by IBM in 1984, intended as a lower-cost version of the PC, but known for its commercial failure.

Retailer Branding

The strategy employed by retailers to differentiate their products or services through unique branding, enhancing their identity and appeal in the marketplace.

Intermediary Branding

The strategy of leveraging intermediary firms, like distributors or retailers, to enhance a product's brand recognition and reach.

Brand Licensing

The legal authorization by a brand owner to allow another company to use the brand's identity on its products or services, typically for a fee.