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The steady rise in stock price over the 30 months prior to the announcement of a stock split is evidence of market inefficiency. True False

The steady rise in stock price over the 30 months prior to the announcement of a stock split is evidence of market inefficiency. True False

In class we discussed the stock price effects of block trades (10,000 shares or more). The evidence showed that the stock price decline around the block trade is due to the dilution effect for other shareholders. True False

A negative stock price reaction to an announcement that a firm is issuing new equity implies that the decision to issue equity was a mistake. True False

Mergers for the purpose of diversification don't make sense since investors can diversify on their own. True False

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