A thinly traded market is a market where
A) there are only a small number of buyers and sellers.
B) many firms are implementing acquisition strategies.
C) information about opportunities in this market is widely known.
D) the only important interest is to maximize the value of a firm.

Question

Quizplus · Accepted Answer

A thinly traded market is characterized by low trading volume and a limited number of buyers and sellers. This can make it difficult to buy or sell assets quickly and at a fair price, which can lead to wider bid-ask spreads and increased price volatility. The other choices are not necessarily related to the definition of a thinly traded market.

A Thinly Traded Market Is a Market Where