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

question 98

Multiple Choice

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

• A) insiders will be the only investors to gain.
• B) it takes at least ten 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:

Payroll Taxes

Taxes that are withheld from employees' wages or paid by employers on behalf of their employees, typically including social security and medicare taxes.

Subcontractors

Individuals or companies hired by a primary contractor to perform specific tasks as part of a larger project.

Vendors

Businesses or individuals that supply goods or services to another business.

Timesheet

A timesheet is a document or tool used to track the amount of time an employee has worked on various tasks or projects.