Question

Most financial economists attribute the drop in the price of equity subsequent to the announcement of...

Most financial economists attribute the drop in the price of equity subsequent to the announcement of a new issue to

a) information effect.

b) an increase in the supply of shares.

c) an increase in the supply of shares and information effect.

d) neither an increase in the supply of shares nor information effect.

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Answer #1

Most financial economists attribute the drop in the price of equity subsequent to the announcement of a new issue to:-

a) information effect.

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