Possible disadvantages of private stock exchanges to investors include:

Question

Quizplus · Accepted Answer

Both choices B and C are possible disadvantages of private stock exchanges. If firms are not required to disclose as much information as they would if they went public, investors could potentially have less information to make informed investment decisions. Additionally, limited trading volume could make it difficult for investors to buy or sell shares quickly or at a fair price. Additionally, choice A is not necessarily a disadvantage as the limitation of access to large institutional investors is a common feature of private markets.

Possible Disadvantages of Private Stock Exchanges to Investors Include