Retail Specialties just announced that its Chief Operating Officer is retiring at the end of this month. This announcement will cause the firm's stock price to:
A)increase.
B)either increase or remain constant.
C)remain constant.
D)decrease.
E)either increase, decrease, or remain constant.

Question

Quizplus · Accepted Answer

The announcement of a Chief Operating Officer retiring can have varying impacts on a firm's stock price depending on how investors perceive the departure. If they view it as a loss of valuable leadership, the stock price might decrease. If they see it as an opportunity for fresh perspectives and positive change, the stock might increase. Or, the market might view the retirement as neutral, causing little to no immediate change in the stock price. Therefore, the stock price could either increase, decrease, or remain constant.

Retail Specialties Just Announced That Its Chief Operating Officer Is