Security Markets Are Efficient When Each of the Following Exist

question 76

Multiple Choice

Security markets are efficient when each of the following exist except:

• A) there is a continuous market in which each successive trade is made at a price close to the previous price.
• B) the markets can absorb large dollar amounts of stock without destabilizing the price.
• C) prices adjust rapidly to new information.
• D) all of the trades occur between 9:30 am and 4:00 pm.other conditions must exist.

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Definitions:

Unreasonable Conduct

Behavior by an individual or entity that is not rational or sensible, often violating norms or laws.

Antitrust Actions

Legal measures taken to prevent or reduce monopoly power and foster competition in the marketplace.

Antitrust Action

Measures enforced by governments to prevent or reduce market monopolies and promote competition among businesses.

Cease-and-Desist Orders

Legal orders issued by a court or regulatory authority to halt practices or actions deemed illegal or harmful, often used in the context of business operations and intellectual property.