Signaling principle

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Signaling principle

USA Today once reported that executives of Teradyne told Wall Street analysis that "business was jumping" but the next the firm's chairman's sold 24,800 shares of his stock in the firm for $32 each, or $793,600. The chairman's secretary said the shares belonged to his daughter. Interpret these events in light of the Signaling Principle

Reference no: EM1368254

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