Which of the Following Is NOT a Necessary Condition for an Efficient

question 26

Multiple Choice

Which of the following is NOT a necessary condition for an efficient market?

• A) many buyers and sellers
• B) no prohibitively high barriers to entry
• C) free and readily available information available to all participants
• D) no trading or transaction costs

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Definitions:

1-Year Bond

A bond that matures in one year, often used for short-term investment strategies.

Zero-Coupon Bond

A zero-coupon bond is a debt security that doesn't pay interest (a coupon) but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full face value.

Purchase Price

The amount of money that has been agreed upon to buy an asset, product, or service.

Face Value

The nominal value stated on a financial instrument, such as a bond or stock, representing its legal value at issuance or redemption.