new labs just announced that it has received a patent for a product that will eliminate all flu viruses. this news is totally unexpected and viewed as a major medical advancement. which one of the following reactions to this announcement indicates the market for new labs stock is efficient?

Respuesta :

The price of New Labs' shares rises sharply to a higher level before staying there.

An IPO is what?

Initial release to the public (IPO) A company's first sale of stock to the general public is known as an initial public offering (IPO). The selling of additional shares of stock by a corporation whose shares are already traded publicly is known as a "seasoned equity offering" (SEO).

Which of the following statements best describes the efficient securities market hypothesis?

Share prices, according to the efficient market hypothesis (EMH) or theory, accurately reflect all available information. According to the EMH, equities trade on exchanges at their fair market value. EMH proponents contend that investing in a low-cost, passive portfolio is advantageous for investors.

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