An Analyst Who Relies on Past Cycles of Stock Pricing

question 67

Multiple Choice

An analyst who relies on past cycles of stock pricing to make investment decisions is:

• A) performing fundamental analysis.
• B) relying on strong-form market efficiency.
• C) assuming that the market is not even weak-form efficient.
• D) relying on the random walk of stock prices.

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Definitions:

Common Stock

Shares entitling their holder to dividends that vary in amount and may even be missed, depending on the fortunes of the company.

Journal Entry

A record that captures the financial impact of a business transaction in the accounting system.

Stock Issuance

The process of making new shares available for sale by a company, often to raise capital.

Credit To

An accounting entry that increases the balance of liabilities, equity, or revenue accounts, or decreases the balance of assets or expense accounts.