An efficient capital market is one in which:
A) all securities that investors desire are offered.
B) all transactions are closed within 2 business 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 where current prices reflect all available information, meaning that investors can make informed decisions based on the most up-to-date data. This is achieved when information is quickly and accurately incorporated into the current price of a security, which in turn helps to ensure that prices are fair and unbiased. Options A, B, and D may be desirable features of a capital market, but they do not necessarily determine market efficiency.

An Efficient Capital Market Is One in Which