Jaycee Martinez
New member
* This one is just for fun * 
If markets are at least semi-strong efficient, and a company announces new, unexpected information regarding its future prospects, (namely, that sales will be much lower than previously expected) what do you expect will happen in the stock market?
A. The value of a share will drop immediately to a price that reflects the value of the new information.
B. The value of a share will fall below what is considered appropriate because of the decreased demand for the shares, but eventually the price will rise to the correct level.
C. The stock price will not change since this type of information has no impact in markets that are semi-strong form efficient.
D. The value of a share will decline over an extended period of time as investors begin to sell shares in the company.
If markets are at least semi-strong efficient, and a company announces new, unexpected information regarding its future prospects, (namely, that sales will be much lower than previously expected) what do you expect will happen in the stock market?
A. The value of a share will drop immediately to a price that reflects the value of the new information.
B. The value of a share will fall below what is considered appropriate because of the decreased demand for the shares, but eventually the price will rise to the correct level.
C. The stock price will not change since this type of information has no impact in markets that are semi-strong form efficient.
D. The value of a share will decline over an extended period of time as investors begin to sell shares in the company.