Given efficient markets,the disclosure of favourable new information about a firm would be evidenced by:

Question

Quizplus · Accepted Answer

Efficient markets would incorporate any new information quickly and accurately into the stock price, resulting in an increase in the share price for favourable news. A decrease or no change in share price would indicate that the market is not efficiently incorporating the new information. Therefore, choice C, A share price increase, is the best choice.

Given Efficient Markets,the Disclosure of Favourable New Information About a Firm