Gold Ltd made an unexpected announcement at 11am that a new gold mine had been discovered.The share price established in the last trade before the announcement was 37 cents.The first trade after the announcement was also at 37 cents but the following trade took place at 52 cents,which became the new established price.With regards to the first trade after the announcement:

Question

Quizplus · Accepted Answer

The first trade after the announcement was at the same price as the last trade before the announcement, so the buyer did not make a profit or loss. However, the next trade took place at a higher price of 52 cents, indicating that the market perceived the announcement to be positive. Therefore, the buyer in the first trade was able to sell at 52 cents and make an abnormal profit.

Gold Ltd Made an Unexpected Announcement at 11am That a New