A company isuues a suprise profit warning claiming their profits are one-third less than expected, so the stock of the company goes down in price by 12%. If the decrease in company's profits had not been a surprise, would the effect of the announcement on its stock price have been different?

A.Yes, investors would not have been as surprised by the announcement and would not have sold their shares, thus keeping the price stable.

B.Yes, investors would have already decreased their demand for this stock causing its price to drop before the announcement was made.

C.No, before the announcement there is not complete certainty that profits will decrease therefore all investors will wait for the official announcement.

D.No, it does not matter when investors knew about the decrease in profits since they are not allowed to sell their stocks until after the announcement.