Asked by Mercedez Miller on May 10, 2024
Verified
Most of the stock price response to a corporate earnings or dividend announcement occurs within ________.
A) about 30 seconds
B) about 10 minutes
C) 6 months
D) 2 years
Corporate Earnings
The profit a company generates during a specific period after accounting for all expenses, taxes, and costs, which can influence its stock price.
Dividend Announcement
A public statement by a company indicating its intention to distribute earnings to shareholders in the form of dividends.
- Acquire knowledge about the role of public and private information in determining stock prices as per the Efficient Market Hypothesis.
- Gain insight into the idea of abnormal return and its significance.
Verified Answer
PK
Pragya KunwarMay 15, 2024
Final Answer :
B
Explanation :
Most of the stock price response to a corporate earnings or dividend announcement occurs within about 10 minutes, as markets quickly assimilate and react to new information.
Learning Objectives
- Acquire knowledge about the role of public and private information in determining stock prices as per the Efficient Market Hypothesis.
- Gain insight into the idea of abnormal return and its significance.