According to the Efficient Markets Theory of Stock Prices,who Are

question 6

Multiple Choice

According to the efficient markets theory of stock prices,who are the primary beneficiaries of a sudden rise in demand for a firm's stock?

• A)the consumers of the firm's products
• B)the current shareholders at the time of the rise in demand
• C)the investors who buy the firm's stock shortly after the rise in demand
• D)the investors who sell their shares just before the rise in demand
• E)the investors who have been carefully watching stock price patterns

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Definitions:

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, reflecting its nature in the double-entry accounting system.

Financial Statement

A written record that conveys the business activities and the financial performance of a company.

Permanent/Temporary

Refers to the classification of accounts based on their longevity; permanent accounts are not closed at the end of the accounting period, while temporary accounts are.

Net Sales

Total sales revenue less returns, allowances, and discounts.