The increasing importance of international stock transactions most likely will
A) result in international portfolio diversification.
B) facilitate the movement of financial capital to its best use.
C) possibly contribute to greater world volatility in world financial markets.
D) all of the above.

Question

Quizplus · Accepted Answer

The increasing importance of international stock transactions can lead to international portfolio diversification, as investors seek to spread their risks across different markets. It can also facilitate the movement of financial capital to its most productive use, as investors can identify and invest in companies with the highest potential returns regardless of their location. However, it may also contribute to greater volatility in world financial markets, as the economic and political conditions in different countries can affect the performance of stocks. Therefore, choice D, all of the above, is the best answer.

The Increasing Importance of International Stock Transactions Most Likely Will