After making her decision using the financial statements information in point b, Nora notices that...
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After making her decision using the financial statements information in point b Nora notices that the market price of A shares rises significantly. Nora asks the advisor how this could happen. The advisor replies that economywide events occurring after the disclosure of the financial statements were the reason for the increase in the share price. Do you agree? Explain why or why not. Suggest, and explain, possible reasons for the positive market response.
After making her decision using the financial statements information in point b Nora notices that the market price of A shares rises significantly. Nora asks the advisor how this could happen. The advisor replies that economywide events occurring after the disclosure of the financial statements were the reason for the increase in the share price.
Do you agree? Explain why or why not.
Suggest, and explain, possible reasons for the positive market response.
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