Market timing means that managers may sell ________ when they believe the stock is over-valued and rely on ________ when the stock is under-valued.

Question

Quizplus · Accepted Answer

Market timing refers to the strategy where managers issue new shares when they believe their company's stock is overvalued, taking advantage of the higher price, and rely on debt financing when they believe the stock is undervalued to avoid issuing undervalued shares.

Market Timing Means That Managers May Sell ________ When They