A firm with a total market value of $1 billion announces a 4-to-1 stock split. Prior to the split, the stock was selling for $20 per share. Suppose the actual post-split price per share is $8. Assuming no signaling effect in the form of new information, what does this tell us about market efficiency

Security prices are set by active market participants. which of the following is not a consequnce of this fact? a. the market price will be set by the buyer who can take best advantage of the asset. b. the price is set by the buyer willing to pay the highest price. c. superior information about an asset can increase its value by reducing its risk. d. market participants have a strong incentive to reveal private information about a security.