The hypotheses that states that firm's try to time the market by issuing stocks when stock prices are high and repurchasing shares when prices are low is called:
A) the market theory hypothesis
B) the market timing hypothesis
C) the market value hypothesis
D) the market pricing hypothesis

Question

Quizplus · Accepted Answer

The hypothesis that states that firms try to time the market by issuing stocks when stock prices are high and repurchasing shares when prices are low is called the market timing hypothesis.

The Hypotheses That States That Firm's Try to Time the Market