Market timing means that managers may sell new shares when they believe the shares are undervalued and rely on debt when the shares are undervalued.

Question

Quizplus · Accepted Answer

Market timing refers to the practice of trying to predict market trends and making investment decisions based on those predictions. It does not involve selling new shares when undervalued and relying on debt when overvalued.

Market Timing Means That Managers May Sell New Shares When