What is the basis for upward movement in the stock of an acquisition candidate?
Answer to relevant QuestionsDo the stocks of acquiring companies tend to show strong upward market movement as a result of the merger process? Comment on the reasoning behind your answer. What criticisms of the small-firm effect were offered by Roll, and Stoll and Whaley? Were these considered valid by Reinganum? Suggest some studies that would indicate the market is not completely efficient in the semistrong form. If the advance-decline movement in the market is weak (more declines than advances) while the DJIA is going up, what might this indicate to a technician about the market? What is an agency issue? Are they direct obligations of the U.S. Treasury?
Post your question