Which One of the Following Best Describes the Term "Efficient

question 41

Multiple Choice

Which one of the following best describes the term "efficient market"?

• A) The commissions on large transactions are smaller than the commissions on small transactions.
• B) New information is quickly reflected in security prices.
• C) Little time and effort are spent on marketing securities to the public.
• D) The cost of receiving, processing, executing, and reporting securities orders is small.

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Definitions:

Commuting Cost

The expenses associated with traveling from one's residence to their place of work or study.

Capitol

The building where a legislative body of a government meets, particularly associated with the United States Congress.

Industry

The collection of businesses and organizations involved in producing similar goods or services.

Market

A place or arrangement through which buyers and sellers engage in exchange of goods and services.