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:

Happiness

A condition of good health reflected by feelings that vary between satisfaction and extreme happiness.

Happiness

A state of well-being and contentment characterized by positive emotions and life satisfaction.

Fair

Equitable, just, and impartial treatment of all individuals, especially in contexts such as the workplace or legal matters.

Kind

Having or showing a friendly, generous, and considerate nature.