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

question 18

Multiple Choice

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

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

---

Definitions:

Vertical Ruler

A tool in various software applications that helps align and measure objects vertically on the screen.

Selection Line

A visual indicator or line that highlights or marks the selection of text, objects, or areas in a software application for manipulation or editing.

Controls

User interface elements in software design that allow users to interact with an application, such as buttons, text boxes, and sliders.

Display Control

A setting or property in software development that determines how data or user interface elements are shown on the screen.