Which of the following statements is most correct?
A) A market is transparent when trading is inexpensive.
B) A market is transparent when accurate information is available to all market participants.
C) A transparent market has few regulations.
D) A transparent market has many opportunities for trading on insider information.
E) A market is transparent when everyone knows who the person is that they are trading with.

Question

Quizplus · Accepted Answer

Transparency in a market refers to the degree to which accurate and reliable information is available to all market participants. This allows for fair and efficient trading, as all parties are able to make informed decisions based on the same information. It is not related to the cost of trading, the level of regulation, insider trading opportunities, or knowledge of trading partners.

Which of the Following Statements Is Most Correct