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:

Psychoanalytic

Relating to a method of psychological theory and therapy that aims to treat mental disorders by investigating the interaction of conscious and unconscious elements in the mind.

Latent Content

In psychoanalysis, the underlying meaning or symbolic content of a dream, as opposed to its literal storyline.

Dreaming

A series of thoughts, images, and sensations occurring in a person's mind during sleep, often studied in psychology to understand subconscious desires and processes.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.