A national securities market can be informationally efficient in a domestic context and yet segmented in an international context.

Question

Quizplus · Accepted Answer

A national securities market can incorporate all available information efficiently within its domestic borders, but it may not efficiently incorporate international information, leading to segmentation in the international context. This can occur due to factors such as regulatory barriers, language barriers, lack of familiarity with foreign markets, and limited access to foreign information sources.

A National Securities Market Can Be Informationally Efficient in a Domestic