If the market price of existing publicly traded shares declines due to the announcement of a seasoned issue of stock,the decline is referred to as which one of the following?

Question

Quizplus · Accepted Answer

When an existing publicly traded stock experiences a decline in its market price due to the announcement of a seasoned issue of stock, this decline is referred to as an abnormal return.

If the Market Price of Existing Publicly Traded Shares Declines