All of the Following Are Necessary Conditions for an Efficient

question 86

Multiple Choice

All of the following are necessary conditions for an efficient market EXCEPT

• A) low trading or transaction costs.
• B) many buyers and sellers.
• C) free and readily available information to market participants.
• D) low stock prices.

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Definitions:

Mere Exposure Effect

An effect in psychology where familiarity leads to a preference towards certain objects or ideas, simply because they are recognized.

Social Exchange Theory

A theory that explains social change and stability as a process of negotiated exchanges between parties.

Fear Of Rejection

An intense and pervasive apprehension of being excluded or dismissed by others.

Speed-Dating Gathering

A social event where individuals have brief conversations with potential romantic partners in order to determine mutual interest.