A national securities market is segmented if the required rate of return on securities in that market differs from comparable securities traded in other, unsegmented markets.

Question

Quizplus · Accepted Answer

A segmented securities market is characterized by different required rates of return on securities compared to similar securities traded in other markets. This can result from differences in investor preferences, regulatory environments, economic conditions, or other factors that affect the demand and supply of securities in a particular market. As a result, investors may be able to achieve higher returns or reduce risk by investing in segmented markets or diversifying across different markets.

A National Securities Market Is Segmented If the Required Rate