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Desirable Properties of Capital Markets--FINAN 450 (#9)

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cmarquardt94's version from 2017-01-24 16:37

Section

Question Answer
economic efficiency ? making transactions at a low cost
informational efficiency ? the ability of prices to reflect new information; NOT the ability to get information
fairness?market participants all have the same opportunity to compete
Transparency ?the ability to observe market activity (prices & volume)
Stability?prices react to real information
liquidity?the ability to sell at a price close to fair value
memorize