Which of the Following Is True About the Impact on Market

question 35

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, since the impact is primarily in the future.
• C) The price will change little, since the market considers this information unimportant.
• D) The price will change little, since the market considers this information untrue.
• E) The price will change little, since the market has already included this information in the security's price.

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Definitions:

Actual Performance

Refers to the real, observed work output or achievements of an employee, as opposed to expected or projected performance.

Timing Appraisals

Involves the assessment or evaluation of processes or employees at specific intervals to ensure optimal performance.

Brief Time Period

A short duration or span of time.

Merit Increase

A raise in pay based on an employee's performance, recognizing outstanding work contributions.