In an efficient market, stock prices adjust quickly to new public information.

Question

Quizplus · Accepted Answer

In an efficient market, new public information is quickly reflected in stock prices, as market participants quickly incorporate the information into their buying and selling decisions. This means that stock prices should adjust rapidly to any new information that affects a company's financial performance or outlook. However, some argue that markets may not always be perfectly efficient, as there may be delays or errors in processing information or in how investors interpret and respond to it.

In an Efficient Market, Stock Prices Adjust Quickly to New