If You Believe in the _______ Form of the EMH,you

question 42

Multiple Choice

If you believe in the _______ form of the EMH,you believe that stock prices only reflect all information that can be derived by examining market trading data such as the history of past stock prices,trading volume or short interest.

• A)semistrong
• B)strong
• C)weak
• D)all of the above
• E)none of the above

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Definitions:

Declared Right

A benefit or privilege announced by a company to its shareholders, such as the right to purchase additional shares at a determined price before the public.

General Cash Offer

A public offering of securities to all investors by a company aiming to raise capital, as opposed to a rights offering or private placement.

Securities

Financial instruments that represent ownership positions in corporations (stock), creditor relationships with governmental bodies or corporations (bonds), or rights to ownership as represented by an option.

Rights Offering

A method by which companies raise additional capital by giving existing shareholders the right to subscribe to new shares at a discount.