Gold Ltd made an unexpected announcement at 11 am 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 second trade after the announcement:

Question

Quizplus · Accepted Answer

The second trade after the announcement, which took place at 52 cents, reflects the market's reaction to the new information about the gold mine discovery. Since this price adjustment is based on new, publicly available information, it represents a new equilibrium price rather than an abnormal profit or loss for either party.

Gold Ltd Made an Unexpected Announcement at 11 Am That