Capital Market Segmentation Is a Financial Market Imperfection Caused Mainly

question 9

Multiple Choice

Capital market segmentation is a financial market imperfection caused mainly by:

• A) government constraints.
• B) institutional practices.
• C) investor perceptions.
• D) all of the above

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Definitions:

Hierarchy

An arrangement or institution where individuals or sectors are hierarchically positioned above each other based on their level of power or prestige.

Cognitive Needs

Psychological requirements of individuals that drive their desire to acquire knowledge, understanding, and rationality.

Innate Needs

Fundamental psychological or physiological needs that are born with an individual, determining motivations and behaviors.

Prestige Needs

The desire for esteem, respect, and admiration from others, considered as part of higher-level needs in Maslow's hierarchy.