A market for securities in which brokers and dealers compete fairly so that the cost of transacting is low and the speed of execution is high is known as a(an) _____ efficient market.

Question

Quizplus · Accepted Answer

An internally efficient market is one where the cost of transacting is low and the speed of execution is high due to fair competition among brokers and dealers within the market. Therefore, the best choice would be option D. Option A (externally efficient market) refers to a market where prices quickly adjust to new information from outside the market, while option B (allocationally efficient market) refers to a market where resources are allocated in the most efficient manner. Option C (global market) refers to a market that is not restricted by national boundaries.

A Market for Securities in Which Brokers and Dealers Compete