Which of the Following Is a Reason Why the Global

question 68

Multiple Choice

Which of the following is a reason why the global capital market is increasingly becoming speculative?

• A) A global market reduces the liquidity of investments and increases the chances of incurring losses.
• B) Investments in the global capital market are faced with a lack of quality information.
• C) Investments in the global capital market are not conducive to diversification.
• D) The cost of capital is more in a global market and this increases the level of risk associated with it.

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Definitions:

Negotiation

The process in which two or more parties discuss an issue with the aim of reaching a mutually acceptable agreement.

Breach

A violation or infringement of a legal obligation, contract, or duty.

Transfer

The process of transferring something from one individual, location, or scenario to another.

Indorsement

An endorsement, especially regarding financial documents, illustrating the process of signing the back of a negotiable instrument to transfer its ownership.