Equity Investments Q63

0. Markets that have high costs of trading in terms of dealer’s commissions, bid-ask spreads and order price impacts are most likely to be:

Answer
Comment
Array

Option : C
Explanation : Cost of trading determines the operational efficiency of a financial market. If a market has high cost of trading, it is operationally inefficient. If filling orders is very costly, informed trading may not be possible.

Forgot your password?

I agree with the Terms.