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The stock price will increase and settle at a new equilibrium level. The degree of market efficiency affects investors and market participants, as well as

The stock price will increase and settle at a new equilibrium level.
The degree of market efficiency affects investors and market participants, as well as financial
managers.In efficient markets, accounting adjustments that do not affect the firm's expected cash flows or the risk of cash flows are to affect the price of a security.
Along with the concept of efficiency of markets, academicians and researchers around the world also believe that investors are not always rational.
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