Which of the Following Is True About the Impact on Market

Multiple Choice

Which of the following is true about the impact on market price of a security when a company makes an announcement and the market has discounted the news?

A) The price will change a great deal; even though the impact is primarily in the future, the
Future value is discounted to the present.
B) The price will change little, if at all, since the impact is primarily in the future.
C) The price will change little, if at all, since the market considers this information
Unimportant.
D) The price will change little, if at all, since the market considers this information untrue.
E) The price will change little, if at all, since the market has already included this information
In the security's price.