If Capital Markets Are Completely Efficient, Then the Purchase or Sale

question 22

True/False

If capital markets are completely efficient, then the purchase or sale of any security at the prevailing market price is never a positive-NPV transaction.

---

Definitions:

Shareholders

Persons or entities that hold ownership interest in a corporation through stock, participating in its profits and decisions.

Personal Income Tax

A tax levied by government on individuals or households based on their total yearly income from all sources.

Consortium

A group of companies or institutions formed to undertake an enterprise or project together, often pooling resources for a common goal.

Market Advantage

Market advantage refers to a strategic edge one company holds over competitors within its industry or market, often leading to stronger sales or brand loyalty.