Question

Suppose that you are asked to forecast future stock prices of ABC Corporation, so you proceed to collect all available information. The day you announce your forecast, competitors of ABC Corporation announce a brand new plan to merge and reshape the structure of the industry. Would your forecast still be considered optimal?

Short answer

No, because the company's price would be affected by rivals, the forecasted future stock price would have to alter.

Step-by-step solution

Stock market : 

A market where businesses may register and sell long-term debt and securities to the general public.

Explanation : 

No, because the company's price would be affected by rivals, the forecasted future stock price would have to alter. The merging of competitors with the new business and the reshaping of the industry would have a direct influence on the entire stock price of the industry, necessitating a re-forecast of stock prices. As a result, the preceding forecast will be ignored.