Generally,investors Interpret the Announcement of an Increase in Dividends As

question 33

Multiple Choice

Generally,investors interpret the announcement of an increase in dividends as:

• A)bad news and the stock price drops.
• B)good news and the stock price increases.
• C)a nonevent and does not affect the stock price.
• D)very bad news and the stock price plunges.

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Definitions:

Registration Statement

A legal document filed with the Securities and Exchange Commission (SEC) that supplies essential financial and business information about a company prior to going public.

Securities Act

A U.S. law enacted in 1933 that regulates the offer and sale of securities to protect investors against fraud.

Pharma Corporation

A company involved in the development, production, and marketing of pharmaceutical drugs and medications.

Financial Information

encompasses data related to the monetary aspects of an individual or organization, such as assets, liabilities, income, and expenses.