Security Markets Are Efficient When Each of the Following Exist

question 46

Multiple Choice

Security markets are efficient when each of the following exist except

• A) security prices follow the leading indicators such as the DJIA very closely.
• B) the markets can absorb large dollar amounts of stock without destabilizing the price.
• C) prices adjust rapidly to new information.
• D) there is a continuous market where each successive trade is made at a price close to the previous trade.

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Definitions:

Competitors

Businesses or individuals that offer similar products or services and compete in the same market.

Social Media

Platforms and technologies that enable the sharing of ideas, thoughts, and information through the building of virtual networks and communities.

Product Launch

Completing all the final preparations for making the fully tested product available to the market.

Idea Generation

The creative process of generating new concepts, solutions, or approaches, often as a preliminary step in problem-solving or innovation.