It is generally recognized that the market is more efficient when dealing with small firms that are not trading on large organized stock markets.

Question

Quizplus · Accepted Answer

The market is generally considered more efficient for large firms trading on organized stock markets because there is more information available to the public, leading to more accurate pricing of stocks. Small firms not on these markets often suffer from less transparency and lower liquidity, making the market less efficient in pricing their securities.

It Is Generally Recognized That the Market Is More Efficient