Which of the following is NOT an example of an event that may give rise to general information-based trading?
A) the outbreak of war
B) a change in the party in power as a result of an election
C) the announcement of a rise in inflation
D) a consistent dividend policy.

Question

Quizplus · Accepted Answer

A consistent dividend policy does not necessarily give rise to general information-based trading, as it is likely already reflected in the market price of the stock. In contrast, the other events listed can change the outlook for the economy or a particular industry, leading to increased demand for information and trading activity as investors seek to adjust their portfolios accordingly.

Which of the Following Is NOT an Example of an Event