An efficient capital market is one in which:
A) all securities that investors want are offered.
B) all transactions are closed within 2 days.
C) current prices reflect all current information.
D) the lowest interest rates are offered.

Question

Quizplus · Accepted Answer

An efficient capital market is one in which current prices reflect all current information. This means that investors can't earn excess profits by trading based on publicly available information. Efficient capital markets promote fair pricing and transparency, which facilitates investments and ensures allocation of resources to their best use.

An Efficient Capital Market Is One in Which