Efficient Market Hypothesis TransTrust Corp. has changed how it accounts for inventory. Taxes are unaffected, although the resulting earnings report released this quarter is 20 percent higher than what it would have been under the old accounting system. There is no other surprise in the earnings report, and the change in the accounting treatment was publicly announced. If the market is efficient, will the stock price be higher when the market learns that the reported earnings are higher?
Week Bullish Bearish Neutral
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