Exam 9: Efficient Markets and Anomalies

The semi-strong form of the efficient market hypothesis says that investors are not able to use _____________ information for their gain.

There is rarely a significant change in stock price when an OTC stock becomes listed on a national exchange.

What is market capitalization?

Prominent research on the small firm effect has been done by:

Under the weak form of the efficient market hypothesis, stock prices are considered to be independent over time.

The January Effect refers to the observation that in January small stocks seem to under-perform the market.

When should an investor in OTC stock approved for listing sell the stock, if the objective is to maximize profit?

Large, prestigious investment banking houses generally provide lower initial returns to investors on new issues underwritten.

The best strategy in a new public offering is often to sell the stock shortly after it becomes public.

In a leveraged buyout, the company's balance sheet serves as a collateral base to make the borrowing possible.

Value Line Group 5 Stocks tend to have the strongest performance.

Which of the following is NOT a reason for the failure of investment in small firms to catch on as an important strategy?

An acquisition may be canceled because of any of the following except:

The semistrong form of the efficient market hypothesis maintains all of the following, except that:

Studies of the small-firm effect indicate that there may be superior return potential in investing in smaller-capitalization firms, because:

Research on the strong form shows that _______ are able to achieve superior returns.

The weak form of the efficient market hypothesis can be tested by utilizing

Once management announces that it will buy back one million shares over a given time period, as circumstances become appropriate,

The stock price of an acquisition candidate changes dramatically prior to announcement because of:

Studies have shown that the best time to sell an unseasoned issue is: