According to the text speculators perform an important function in the financial markets. They:
A) Create underpricing of certain securities, generating more attractive investment opportunities
B) Cause some securities to be overpriced which tends to drive out those securities
C) Level out the prices of securities
D) Help to prevent security fraud
E) None of the above

Question

Quizplus · Accepted Answer

Speculators help to level out the prices of securities by buying when prices are low and selling when prices are high, contributing to market efficiency and liquidity.

According to the Text Speculators Perform an Important Function in the Financial