In an Efficient Market If a Company Announced Sales of a New

question 36

Multiple Choice

In an efficient market if a company announced sales of a new product are lower than expected, what would you expect to happen to the stock price?

• A) It would not change.
• B) It would increase.
• C) It would decrease.
• D) It would move it the same direction as the market in general.

---

Definitions:

Corporate Officers

High-ranking executives appointed to manage an organization or corporation, such as CEOs, CFOs, and COOs, responsible for its day-to-day operations.

Employees

Individuals who are hired by a business or organization to perform work in exchange for compensation.

Duty to Reimburse

The obligation to pay back or compensate another party for expenses, losses, or damages incurred on one's behalf.

Authorized Expenditure

An approved expense deemed necessary and reasonable for the operation or management of a business or organization.