When information costs of securities are very high,they lack
A) collateral.
B) transparency.
C) transactions costs.
D) creditworthiness.

Question

Quizplus · Accepted Answer

Transparency refers to the availability and accuracy of information about a security. If the information costs are high, investors may not have access to sufficient information to make informed decisions, resulting in a lack of transparency. The other options are not directly related to the availability of information.

When Information Costs of Securities Are Very High,they Lack