In General, Secondary Offerings Cause an Immediate Increase in the Market

question 80

True/False

In general, secondary offerings cause an immediate increase in the market price of the stock.

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Definitions:

Efficient Markets Hypothesis

The theory that all available information is already reflected in securities prices, implying that stocks always trade at their fair value.

Actual Capital Markets

Refers to live, operational markets where securities, debts, and equities are traded and capital is allocated in real time.

Market Efficiency

A theory stating that all available information is already reflected in asset prices, thus making it impossible to consistently achieve higher returns.