Price Movements Are Random When They Are Equally Likely to Rise

question 24

True/False

Price movements are random when they are equally likely to rise as to fall.

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Definitions:

Preference Shares

Shares that give their holders priority over common stockholders in terms of dividend payments and asset liquidation.

Liquidation

The process of winding up a company's affairs by selling off its assets to pay creditors.

Corporation Act

Legislation that governs the behavior of corporations, detailing the legal requirements for forming, operating, and dissolving a corporation.

Voluntary Winding Up

The process of liquidating a company's assets and ceasing operations based on the decision of its shareholders or members, rather than by order of a court.