Most of the stock price response to a corporate earnings or dividend announcement occurs within ________________.A. about 30 secondsB. about 10 minutesC. 6 monthsD. 2 years
As most of the corporate earning are reflected during the quarterly periods of the company tenures the earnings are reflected in the announcement of the fiscal years.
It takes about 6 months for the dividend to be announced on the corporate earnings. The earnings reflect the demands of the company money markets. However, as the number of stocks earnings increases the shares of the outstanding shares.
Thus the stock prices respond to the changing corporate earnings.
