- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 1. Market Organization and Structure
- Subject 8. Well-Functioning Financial Systems
CFA Practice Question
A well-functioning market ______
II. provides buyers and sellers with timely and accurate information on the volume and prices of past transactions.
III. rapidly adjusts to new information about the fair value of a security.
I. has low transactions costs.
II. provides buyers and sellers with timely and accurate information on the volume and prices of past transactions.
III. rapidly adjusts to new information about the fair value of a security.
Correct Answer: I, II and III
Violations of any of these characteristics will lead to higher costs and lesser ability of investors to make quick, intelligent decisions.
User Contributed Comments 3
| User | Comment |
|---|---|
| mpapwa22 | All three are charecteristics of a well function functioning market. |
| farhan92 | ^sherlock holmes |
| khalifa92 | finally something I can relate to the LOS I read. |