If bond and stock markets are efficient,then the timing of when to issue debt or equity should not matter.

Question

Quizplus · Accepted Answer

If markets are efficient, the timing of issuing debt or equity should not matter because the market will fairly value the securities based on relevant information and potential returns. This means that the company can issue securities at any time and investors will determine their own decision to invest based on market conditions and the company's financials.

If Bond and Stock Markets Are Efficient,then the Timing of When