When New Information Becomes Available in the Market,evidence Suggests That

question 48

Multiple Choice

When new information becomes available in the market,evidence suggests that:

• A) insiders will be the only investors to gain.
• B) it takes at least 10 trading days for stock prices to adjust.
• C) stock prices will adjust to the information rapidly.
• D) transaction costs will erase any benefit of trading on the information.

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Definitions:

Economic Stimulus

Government policy or monetary measures aimed at increasing economic activity, often through increased public spending or tax cuts.

Impact Lag

The time it takes for the effects of economic policies or decisions to be observed in the economy.

Economic Stimulus

Government policy or monetary intervention aimed at promoting economic growth or preventing or reversing a recession by boosting spending and investment.

Public Works Projects

Government-funded projects to build public facilities like roads, schools, and water treatment plants.