Security prices are set by active market participants. Which of the following is NOT a consequence...
Security prices are set by active market participants. Which of the following is NOT a consequence of this fact?
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The price is set by the buyer willing to pay the highest price. |
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The market price will be set by the buyer who can take best advantage of the asset. |
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Market participants have a strong incentive to reveal private information about a security. |
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Superior information about an asset can increase its value by reducing its risk. |
Homework Answers
The following is NOT a consequence of this fact:-
c) Market participants have a strong incentive to reveal private information about a security.
The opposite is true, private information is tried to be kept private so only a select few can trade on the private information.
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