Speculate as to why the share prices of American and US Airways increased sharply on the day that the agreement with the Justice Department had been reached? Why did the share prices of other major airlines also increase?

Question

Quizplus · Accepted Answer

The Answer is Investors approved of the merger and other airline share prices rose due to the expectation that their profits would rise as a result of less competitive fare discounting. Not only would American and US Airways profitability be positively affected but also other airlines as well causing investors to bid up their share prices in anticipation of higher future profits.

Speculate as to Why the Share Prices of American and US