A thinly traded market is a market where
A) there are only a small number of buyers and sellers,where information about opportunities in this market is not widely know, and where interests besides purely maximizing the value of a firm can be important.
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 a low volume of trading activity, indicating that there are only a small number of buyers and sellers. In such a market, information about opportunities may not be widely known and interests besides purely maximizing the value of a firm can be important, making it difficult to achieve optimal pricing.

A Thinly Traded Market Is a Market Where