If securities markets were inefficient,prices would tend to adjust more slowly.

Question

Quizplus · Accepted Answer

If securities markets were inefficient, market participants might not have access to all relevant information needed to make informed decisions about buying and selling securities. This would lead to slower adjustments in prices as investors would need more time to gather and process information. In an efficient market, prices incorporate all available information quickly, leading to faster price adjustments.

If Securities Markets Were Inefficient,prices Would Tend to Adjust More