When Bristol-Myers Squibb Purchased 17% of ImClone's Common Stock to Gain

question 42

Multiple Choice

When Bristol-Myers Squibb purchased 17% of ImClone's common stock to gain access to a new drug,it was using which type of integration?

• A) full integration
• B) long-term contracts
• C) backwards integration
• D) taper integration
• E) quasi integration

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Definitions:

Semistrong-form Efficient

Refers to a market efficiency form where prices include all publicly available information, including both historical and newly released financial data.

Weak-form Efficient

A level of market efficiency that assumes all past trading information is already reflected in stock prices, thus negating the ability to gain higher returns through analysis of historical prices.

Survivorship Bias

Survivorship bias is the logical error of concentrating on the entities or people that made it past some selection process and overlooking those that did not, often leading to false conclusions.

Data Mining

The process of using statistical techniques to extract and identify patterns, relationships, or information from large datasets.