When a stock price reflects all relevant information about the stock,the market is said to be
A)efficient.
B)fractioned.
C)smooth.
D)flat.
E)none of the above.

Question

Quizplus · Accepted Answer

When a market is efficient, it means that all relevant information is already incorporated into the stock price, and it reflects the true value of the stock. This is because in an efficient market, all investors have access to the same information, and they all react accordingly by buying or selling the stock, which results in an accurate price. Fractioned market refers to a market where stocks are traded in fractions, something that is not relevant to the question. Smooth and flat do not accurately describe a market with efficient stock prices.

When a Stock Price Reflects All Relevant Information About the Stock,the