Which of the Following Is True About the Impact on Market

question 28

Multiple Choice

Which of the following is true about the impact on market price of a security when a company makes an announcement and the market has discounted the news?

• A)The price will change a great deal; even though the impact is primarily in the future, the future value is discounted to the present.
• B)The price will change little, if at all, since the impact is primarily in the future.
• C)The price will change little, if at all, since the market considers this information unimportant.
• D)The price will change little, if at all, since the market considers this information untrue.
• E)The price will change little, if at all, since the market has already included this information in the security's price.