In Contrast to Public Markets, Private Markets Are Characterized by Individually

question 23

Multiple Choice

In contrast to public markets, private markets are characterized by individually negotiated transactions that take place without the aid of a centralized market. Therefore, private markets will generally have:

• A) High transaction costs and high liquidity
• B) High transaction costs and low liquidity
• C) Low transaction costs and high liquidity
• D) Low transaction costs and low liquidity

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Definitions:

Private Securities Litigation Reform Act

A 1995 U.S. law aimed at reducing frivolous or unwarranted securities lawsuits through various procedural and substantive reforms.

Illegal Act

An illegal act refers to an action or conduct that is prohibited by law and subject to punishment or sanctions by legal authorities.

Remedial Action

Measures taken to rectify or mitigate damage, including cleanup or repair, especially in environmental contexts.

Auditor

A professional individual or firm tasked with examining and verifying financial statements and records to ensure accuracy and compliance.