Two Weeks Ago Ace Electronics Announced That It Had Developed

question 63

Multiple Choice

Two weeks ago Ace Electronics announced that it had developed a new chip design which was being considered by major companies for use in future smart phone development.At the close of trading the day before the announcement,Ace common stock closed at $20.On the day following the announcement,Ace closed at $21.Two days after the announcement the stock closed at $22.50.Four days after the announcement the stock traded at $23.Last week,Ace stock traded at $26,a level it has maintained since then.This is an example of a(n) :

• A)over-reaction and correction.
• B)underpricing.
• C)delayed reaction.
• D)pre-activity action.
• E)efficient market reaction.

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Definitions:

Ethicality

The quality of being in accordance with accepted moral standards, principles, or practices.

Psychiatrist

A medical doctor specialized in diagnosing, preventing, and treating mental illness, including prescribing medication.

Obedience

An action engaged in to fulfill a direct order or command of another person.

Superior

Describes someone or something that is above average in quality, rank, or status; better than other similar items or people.