When examining the size and efficiency of financial markets,we want to distinguish between:

Question

Quizplus · Accepted Answer

The value of securities outstanding (which is a measure of the size of the market) and the trading activity of the market (which is a measure of its efficiency and liquidity) are the key factors to consider when examining the size and efficiency of financial markets. The number of securities outstanding and the number of brokers in the market may not necessarily reflect the size and efficiency of the market, while the value of securities outstanding and the trading activity directly affect the market's overall performance.

When Examining the Size and Efficiency of Financial Markets,we Want