Without financial futures, investors would have only one trading location to alter portfolio positions when they get new information that is expected to influence the value of assets and that is the ________.

Question

Quizplus · Accepted Answer

The cash market is the only trading location where investors can alter portfolio positions in the absence of financial futures. This market involves the buying and selling of securities that are settled in cash on the day the trade is executed. Without access to financial futures, investors must rely on the cash market to adjust their portfolio holdings based on new information about asset values.

Without Financial Futures, Investors Would Have Only One Trading Location