Stock price reaction

Related BrainMass Solutions

• Definitions: Dividend Policy, Stock Repurchase, Stock Splits

  A Stock split is thought to bring the Stock value to a more realistic and desired price.

• Dividends: stock market reaction to increases or decreases

  188197 Dividends: market reaction to increases, decreases or terminations What is the average stock market reaction to: a) a dividend initiation, b) a dividend increase, c) a dividend termination, d) a dividend decrease?

• Informativeness of financial statements in efficent markets

  The results of the study indicate that price reaction to annual reports systematically vary the nearer the firms are to financial distress.

• Hedging with an Option

  You expect that the stock price reaction to the news could be substantial - but equally large in either direction, up or down. You would like to protect your downside in XYZ, while preserving the potential upside. a.

• Electronic Corporation stock dividends and stock splits

  Show the impact of a 3-for-2 stock split. c. Describe how the stock market would react to each event. How would you explain the difference in reaction?

• Stock Prices Brief Analysis

  Even if the company reports a loss, if analysts expect a greater loss than occurred, the stock price should move up. Further if a company reports a profit but it's less than expected the stock price should normally drop.

• Finance: What do you expect will happen to Aerotech's stock?

  The price reaction of their stock is listed below. Calculate the abnormal return behavior and explain the behavior.

• Dividends: affect to stock price, policy of smoothing, reducing dividend, new shares

  56038 Dividends: affect to stock price, policy of smoothing, reducing dividend, new shares An increase in dividends might not increase price and may actually decrease stock price if: A)the dividend increase cannot be sustained.

• How easy is it for investors to hedge in the real world?

  If the deal is successful, the price of stock A will increase drastically, while if the deal fails, then price of stock A will drop.