Full disclosure is desirable for all of the following reasons except
A)it helps to prevent the inappropriate use of insider information
B)it helps financial markets to operate more efficiently
C)it helps financial markets to operate more cost effectively
D)it eliminates the need for financial analysis

Question

Quizplus · Accepted Answer

Full disclosure does not eliminate the need for financial analysis. In fact, it provides necessary information for financial analysis to take place. Option D is not a valid reason for full disclosure. Options A, B, and C are valid reasons for full disclosure as they help prevent the inappropriate use of insider information, help financial markets to operate more efficiently, and help financial markets to operate more cost-effectively.

Full Disclosure Is Desirable for All of the Following Reasons