The Functions of the Share Market Do NOT Include

question 38

Multiple Choice

The functions of the share market do NOT include:

• A)performing price discovery by revealing the value of shares
• B)endowing listed securities with liquidity
• C)setting the price for IPOs
• D)disciplining the behaviour of a company's top management.
• E)developing a pool of investors.

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Definitions:

Predictions Incorrect

Situations where anticipated outcomes fail to materialize as expected due to various factors such as flawed assumptions or unforeseen events.

Confirmation Bias

A tendency to search for, interpret, and remember information in a way that confirms one's preconceptions.

Behavioral Economists

Behavioral economists study how psychological, cognitive, emotional, and social factors affect economic decision-making and models.

Suboptimal

A situation or outcome that is not the most efficient or desirable due to being less than the best possible choice.