Describe situation where this increase of the stock price

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Reference no: EM13950128

Cisco, an IT company, has announced a plan to invest in a new factory, and on the same day, the company's stock price jumped up by 1%.

(1) Describe a situation where this increase of the stock price may be interpreted as indicating that investors view the new plan as a bad idea.

(2) If the company's stock price went down by 1% on the day the plan was announced. Describe a situation where this decrease of the stock price may be interpreted as indicating that investors view the new plan as a good idea.

Reference no: EM13950128

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