Signaling occurs when insiders in a corporation take actions that reach public notice.

Name: Signaling occurs when insiders in a corporation take actions that reach public notice.
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Question

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Signaling refers to the actions taken by insiders or management of a corporation that provide clues to outsiders or investors about the health and future prospects of the company. These actions, when they become public, can influence perceptions and decisions of investors, analysts, and other stakeholders.

Signaling Occurs When Insiders in a Corporation Take Actions That