ausinare1922 ausinare1922

10-12-2022
Business

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New Labs just announced that it has received a patent for a product that will eliminate all flu viruses. This news is better than the market expected one month ago. Which one of the following reactions to this announcement indicates the market for New Labs stock is efficient?

A. The price of New Labs stock increases rapidly and then settles back to its pre-announcement level.

B. The price of New Labs stock remains unchanged.

C. All stocks quickly increase in value and then all but New Labs stock fall back to their original values.

D. The price of New Labs stock increases rapidly to a higher price and then remains at that price.

Respuesta :

NehaGupta NehaGupta

16-12-2022

Option D. The price of New Labs stock increases rapidly to a higher price and then remains at that price.

What do you mean by stock?

The ownership certificates of any corporation are referred to as stocks in general. A share, on the other hand, refers to the stock certificate of a specific business. You become a shareholder if you possess shares in a specific business. There are two sorts of stocks: ordinary and preferred.

Should new investors consider stocks?

For beginners in particular, the Indian Stock Market is a fantastic area to start investing. For those looking to enter the market without worrying about the specifics of buying and selling equities, it presents a fantastic option. There are various benefits for investors on the Indian stock market.

To know more about stock visit:

https://brainly.com/question/28663581

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