For decades in the U.S., street vendors have popped up in densely populated areas, such as major cities, beaches, and festivals. These businesses sell things from hamburgers and hot dogs to tacos and Mexican street corn. After the recession hit between 2008 and 2009, the U.S. saw an increase in the number of mobile food businesses, namely an increase in the number of food trucks.
Because this is the first time this industry has seen this much growth, suppose investors look carefully at historical food truck financial records, customer feedback, and any other information they can get their hands on to give them better insight into the industrys potential performance. After investors review this information, suppose they determine that there is a high likelihood of the businesses generating high cash flows, and thus a high return on their investment, and they revise their valuations of the stocks accordingly.
True or False: Given the scenario, the investors are using firm-specific information to take their positions on the security.
True
False
Use the graph to show what happens to the supply, demand, and equilibrium price in the market for food truck stocks in the short run, assuming that if supply and demand change, they do so simultaneously.
Secondary market for food truck stocksDemandSupplyPriceQuantityDemand Supply
Now suppose that instead of determining the businesses have a high likelihood of generating high cash flows, investors determine that there is a high degree of uncertainty surrounding the businesses cash flow generation.
True or False: Given the scenario, the investors are using firm-specific information to take their positions on the security.
True
False
Use the graph to show what happens to the supply, demand, and the equilibrium price in the market for food truck stocks in the short run, assuming that if supply and demand change, they do so simultaneously.
For decades in the U.S. street vendors have popped up in densely populated ateds, such as majer dties, beaches, and festivals. These businesses sell things from henturpers and hot days latacs and Mexican street corn. After the recession hit between 2008 and 2009, the U.S. saw an increase in the number of mobile food businesses, namely an increase in the number of food trucks. Because this is the first time this industry has seen this much growth, suppose investors look carefully at historical food truck financial records, customer feedback and any other information they can get their hands on to give them better insight into the industry's potential performance. After Investors review this information, suppose they determine that there is a high likelihood of the businesses generating high cash flows, and thus a high return on their investment, and they revise their va vations of the stocks accordingly. TUS DE Pals Given the scenario, the investors are using firm-specific information to take the positions on the security True Oralse Use the gragh to show what happens to the supoly demand, and equorum price in the market for food truck stockhort run, assuming that sowy and demand change, they co ac simultaneously ? Secondary sa keboc food truck stooks O Supply Demand Supply Quantity Now suppose that instead of determining the businesses have a high likelihood of generating high cash flows, investors determine that there is a high degree of uncertainty surrounding the businesses' cash flow generation. True or False: Given the scenario, the investors are using tirm-specific information to take their positives on the security Tue False Use che eraan to show what happens to the swyder, and the libra price in the market far from tok stooks to the short run, sunt that if suply and demand changs, they do so strausty Secondary market for food truck stocks -O SUDD Demand -O Supply Derrand For decades in the U.S. street vendors have popped up in densely populated ateds, such as majer dties, beaches, and festivals. These businesses sell things from henturpers and hot days latacs and Mexican street corn. After the recession hit between 2008 and 2009, the U.S. saw an increase in the number of mobile food businesses, namely an increase in the number of food trucks. Because this is the first time this industry has seen this much growth, suppose investors look carefully at historical food truck financial records, customer feedback and any other information they can get their hands on to give them better insight into the industry's potential performance. After Investors review this information, suppose they determine that there is a high likelihood of the businesses generating high cash flows, and thus a high return on their investment, and they revise their va vations of the stocks accordingly. TUS DE Pals Given the scenario, the investors are using firm-specific information to take the positions on the security True Oralse Use the gragh to show what happens to the supoly demand, and equorum price in the market for food truck stockhort run, assuming that sowy and demand change, they co ac simultaneously ? Secondary sa keboc food truck stooks O Supply Demand Supply Quantity Now suppose that instead of determining the businesses have a high likelihood of generating high cash flows, investors determine that there is a high degree of uncertainty surrounding the businesses' cash flow generation. True or False: Given the scenario, the investors are using tirm-specific information to take their positives on the security Tue False Use che eraan to show what happens to the swyder, and the libra price in the market far from tok stooks to the short run, sunt that if suply and demand changs, they do so strausty Secondary market for food truck stocks -O SUDD Demand -O Supply Derrand
