Affected the stock market price of particular company

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Reference no: EM131933726

Each of the following situations describes an event that affected the stock market price of a particular company 1. The price of a common share of McDonnnell Douglas, Inc., increased by over $5 per share in several days after it was announced that Saudia Airlines would order $66 billion of commercial airliners from Boeing and McDonnell Douglas. 2. 3. Citicorp’s common stock price fell by over $3.50 per share shortly after the Federal Reserve Board increased the discount rate by ¼%. The discount rate is the rate charged to banks for short-term loans they need to meet their reserve requirements. 4. 5. The price of a common share of Ventitex, Inc., a manufacturer of medical devices, fell over $10 (27.7%) after it was announced the representatives of the Federal Drug Administration paid a visit to the company. Instructions For each of the independent situations described, explain the likely underlying rationale for the change in market price of the stock.

Reference no: EM131933726

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