Which one of the following best describes the term "efficient market"?
A) The commissions on large transactions are smaller than the commissions on small transactions.
B) New information is quickly reflected in security prices.
C) Little time and effort are spent on marketing securities to the public.
D) The cost of receiving, processing, executing, and reporting securities orders is small.

Question

Quizplus · Accepted Answer

An efficient market is one in which new information is quickly reflected in security prices, meaning that it is difficult for investors to consistently outperform the market by exploiting new information.

Which One of the Following Best Describes the Term "Efficient