Concept explainers
a. The stock price has risen steadily each day for the past 30 days.
b. The financial statements for a company were released three days ago, and you believe you’ve uncovered some anomalies in the company’s inventory and cost control reporting techniques that are causing the firm’s true liquidity strength to be understated.
c. You observe that the senior managers of a company have been buying a lot of the company’s stock on the open market over the past week.
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Fundamentals of Corporate Finance
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