Company x is required to restate its financial statements. based on one study, what is typically the market's reaction to the restatement: 

A. market may penalize the stock price for a three-day period after the restatement. 

B. there should be no effect as the market "bakes" into stock prices anticipated restatements. 

C. it depends on whether the restatement is a positive or negative adjustment and who is responsible for the restatement within management.

D. stock price might increase because management was able to identify the restatement illustrating strong internal controls.

Answer rating: 100% (QA)

C It depends on whether the restatement is a positive or negative adjustment and who ... View the full answer