Asked by Deneatra Caesar on Jun 10, 2024
Verified
The information conveyed by changes in market prices is especially important in financial markets because
A) It forces individual investors to reveal their information about the prospects of a security
B) It assesses business decisions
C) It helps firms forecast the future demand for products
D) All of the above
Financial Markets
Marketplaces where individuals and entities can trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand.
Market Prices
The current price at which an asset or service can be bought or sold in a competitive marketplace.
Security Prospects
The potential for growth or return in investments related to the security or safety of assets.
- Understand the role of price in signaling information within financial markets.
Verified Answer
Learning Objectives
- Understand the role of price in signaling information within financial markets.
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