If Apple Computer decided to issue additional common stock, and Varga purchased 100 shares of this stock from Smyth Barry, the underwriter, would this transaction be a primary or a secondary market transaction? Would it make a difference if Varga purchased previously outstanding Apple stock in the dealer market? g. Explain What is an initial public offering (IPO)? others After your consultation with Michelle, she wants to discuss these two possible stock purchases: h. i. What does it mean for a market to be efficient? Explain why some stock prices may be more efficient than 1. While in the waiting room of your office, she overheard an analyst on a financial TV network say that a ular medical research company just received FDA approval for one of its products. On the basis of this "hot" information, Michelle wants to buy many shares of that company's stock. Assuming the stock partic 2. She has read a number of newspaper articles about a huge IPO being carried out by a leading technoloyy company. She wants to purchase as many shares in the IPO as possible and would even be willing to buy market is highly efficient, what advice would you give her? the shares in the open market immediately after the issue. What advice do you have for her? k. How does behavioral finance explain the real world inconsistencies of the efficient markets hypothesis (EMH