Financial markets do not function as well as they could due to:

Question

Quizplus · Accepted Answer

The cost of obtaining information can be high in financial markets, which can hinder their efficiency. This is because investors need to gather a lot of information about companies, industries, and economic factors in order to make informed decisions about buying and selling securities. The high cost of obtaining this information means that some investors may be at a disadvantage compared to others, leading to inefficiencies in the market. The other options (A, C, and D) may also impact financial markets, but they are not as directly related to their functioning as the cost of information.

Financial Markets Do Not Function as Well as They Could