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
B
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If advertising reduces a consumer's price sensitivity between identical goods, it is likely to
a. increase the elasticity of demand for differentiated products. b. enhance competition and encourage more product diversity. c. reduce competition and reduce social welfare. d. encourage the consumption of all homogenous goods.
In terms of absolute dollar volume, the top 3 leaders in world exports are:
A. Japan, China, and the European Union. B. the United States, England, and Canada. C. Germany, England, and the United States. D. China, Germany, and the United States.