Suppose XYZ Corporation is traded on the New York Stock Exchange.$$ XYZ$\text{'}$s closing price on Monday is$$ $$20$ per share. After the market closes on$$ Monday, XYZ makes a surprise announcement that it has obtained a major new customer.$$ XYZ$\text{'}$s stock will likely

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Part $1$

A$.$

remain at$$ $$20$ per share because in efficient markets the price already reflects all information.

B$.$

open at$$ $$20$ per share on Tuesday and then increase as more investors read the announcement in the Wall Street Journal.

C$.$

open above$$ $$20$ because the positive news will result in a higher valuation even though the stock has not yet traded.

D$.$

open below$$ $$20$ because the surprise announcement creates more uncertainty.