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Question
Two weeks ago Ace Electronics announced that it had developed a new chip design which was being considered by major companies for use in future smart phone development. At the close of trading the day before the announcement, Ace common stock closed at $20. On the day following the announcement, Ace closed at $21. Two days after the announcement the stock closed at $22.50. Four days after the announcement the stock traded at $23. Last week, Ace stock traded at $26, a level it has maintained since then. This is an example of a(n):A. over-reaction and correction.
B. underpricing.
C. delayed reaction.
D. pre-activity action.
E. efficient market reaction.
Answer
This answer is hidden. It contains 15 characters.
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