Werden and Williams [3] contend that stock market studies are inherently inadequate bases for formulating merger policy. They also contend that a study by B. Espen Eckbo and Peggy Wier [2] suffers from many serious problems or outright mistakes. B. Espon Eckbo [1] takes issue with both contentions, but he is not able to undermine the basic thrust of the Werden and Williams argument.