Why shouldnt the managers simply release any inside information to the market to allow the share price

Question:

Why shouldn’t the managers simply release any inside information to the market to allow the share price to rise and so make it possible to issue shares at a fair price? Try to think of one reason.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Management For Decision Makers

ISBN: 9781292311432

9th Edition

Authors: Peter Atrill

See More Books

Question Posted: Dec 31, 2023 12:51 AM

See More Questions

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
Googles ease of use and superior search results have propelled the search engine to its num- ber one status, ousting the early dominance of competitors such as WebCrawler and Infos- eek. Even later...
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
H. S. Black is noted for developing a negative feedback amplifier in 1927. Often overlooked is the fact that three years earlier he had invented a circuit design technique known as feed forward...
Whirly Corporations most recent income statement is shown below: Required: Prepare a new contribution format income statement under each of the following conditions (consider each case...
What are the basic benefits and purposes of developing pro forma statements and a cash budget?
The pure shrinkage estimator is defined as $\hat{\beta}_{s}=c \hat{\beta}$, were $0 \leq c \leq 1$ is a constant chosen by the analyst. Describe the kind of shrinkage that this estimator...
Calculating the Direct Materials Mix Variance Mangia Pizza Company makes frozen pizzas that are sold through grocery stores. Mangia developed the following standard mix for spreading on premade pizza...
Q3: Lessons 8, 9 [CLR 3, 4, 5, 7] (15 marks) a) The bookstore owner in Q2 wants to know if taking 10 observations of his worker inserting disks into the used textbooks were sufficient. He would be...
Comment on each of the following statements. (a) A stock market that is efficient in the strong form is one in which investors cannot make any gains from their investment. (b) Private-equity firms...
Rusli Ltd provides a car valet service for car-hire businesses when their cars are returned from hire. Details of the service costs are as follows: Sales revenue is 10 million a year and is all on...
Which of the following supermarket strategies to increase sales would be most consistent with a behavioral economics (versus neoclassical economics) approach?
Identify the major changes in the workforce that will affect the way managers build a world-class workforce. Why is the knowledge economy so important?
According to the Financial Crisis Inquiry Report, the lack of transparency in the balance sheets of major financial institutions was one of the causes of the financial crisis of 2008. True/false
What might be the advantages and/or disadvantages of ETFs for green and sustainable finance?
What might be the tensions between making green and sustainable funds greener and making those funds more accessible or attractive to large asset owners like pension funds?
In 1999, the Glass-Steagall Act was repealed and the Financial Services Modernization Act was passed to deregulate the _____________ sector in the United States.
The ledger of Kaya Company contains the following balances; Retained Earnings TL30,000; Dividends TL2,000; Service Revenue TL50,000; Salaries Expense TL27,000; and Supplies Expense TL4.000. Prepare...
d. The characteristic equation of a control system is given by s+2s+8s+12s+20s+16+16=0. Determine the number of the roots of the equation which lie on the imaginary axis of s-plane
Calculate the breakeven point in units for each product. Product Fixed costs Contribution margin $ 9,000,000 540,000 11,000 20 15,000 150 3,000
The income statements for the Fresh Sandwich Company for 2009 and 2010 are given below. Your boss wants you to prepare a pro forma income statement for 2011 using the same percentage increases as...
Pro Martin Shoes, which operates one store in Guelph, Ontario, is forecasting next year's income statement results based on a preliminary 10% increase in sales. Required: (a) Complete the 2010 pro...
A marine biologist is preparing a deep-sea submersible for a dive. The sub stores breathing air under high pressure in a spherical air tank that measures 72.0 cm wide. The biologist estimates she...
2. (a) If the W(Cp)2(CO)3 complex follows the 18 VE rule in octahedral geometry, identify the possible hapticity of both Cp ligands. (4 marks) (b) If the complex in (a) follows the 18 VE rule but is...
In addition to a compact table of final results and a general discussion of your findings, be sure to address the following specific questions: Compare the AH values of benzene vs. cyclohexane....

Why shouldnt the managers simply release any inside information to the market to allow the share price

Question:

Step by Step Answer:

There are at least two reasons why this may not be a good idea ...View the full answer

Financial Management For Decision Makers

Students also viewed these Business questions