Your friend, John, believes that since capital markets are efficient, he doesn't need to read the financial press or
be involved in stock research before purchasing stocks for his portfolio.
He simply throws darts at the stock
pages and buys the stocks the darts hit. Is stock research and analysis important when buying and selling stocks
in an efficient market?
Question 2
If a corporation wants a guarantee that all of its shares of stock will be sold, it should use which of
the following distribution methods?
A) privileged subscription with no standby agreement
B) competitive bid purchase
C) direct sale
D) commission or best-efforts contract