The Price Discovery Function of Markets Is Useful

question 33

Multiple Choice

The price discovery function of markets is useful:

• A)to investors, to help them monitor the value of their investments
• B)to potential issuers of securities because it informs them of the proceeds they can expect to receive
• C)in revealing the general movement in market values through indices.
• D)All of these.
• E)None of these.

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Definitions:

Subjective Norms

Subjective Norms refer to an individual's perception of whether people important to them think they should perform a behavior. This concept plays a crucial role in theories of behavioral intention.

Norms

Informal understandings that govern the behaviors of members of a society, guiding what actions are considered acceptable or not.

Cognitive Dissonance

The mental unease felt when possessing two or more contradictory beliefs, values, or attitudes.

Planned Behavior

A theory that predicts an individual's intention to engage in a behavior at a specific time and place.