ABC Ltd made an unexpected announcement concerning a major new contract on Monday,but ABC shares were not traded until the following Wednesday and Friday.The closing price on Wednesday was unchanged from Monday but different to that on Friday.Trading of ABC shares appears to be an example of:

Question

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The fact that there was an unexpected announcement on Monday about a major new contract and yet the shares were not traded until Wednesday and Friday suggests market inefficiency. If the market was efficient, the news would have been immediately reflected in the share price on Monday. However, the fact that the closing price on Wednesday was unchanged from Monday also suggests that the announcement imparted no new, significant information. This could be why there was no immediate reaction, but it still does not explain why the shares were not traded until days later. Therefore, the most likely explanation is market inefficiency.

ABC Ltd Made an Unexpected Announcement Concerning a Major New