Which of the Following Is True About the Impact on Market

question 19

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

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Definitions:

Organization

The arrangement or structuring of elements in a systematic way to achieve objectives or manage activities efficiently.

Nonverbal Cues

Forms of communication without words, including gestures, facial expressions, body language, and tone of voice, which can convey emotions and attitudes.

Speaker's Feelings

The emotions or sentiments expressed by an individual delivering a speech or presentation, which can influence the tone and impact of the message.

Eye Contact

The act of looking directly into another person's eyes, which can convey a range of emotions and intentions, and is an important aspect of nonverbal communication.