The presence of a financial market increases the marketability of a financial security by:
A) insuring the price of the security.
B) reducing the transaction costs for selling the security.
C) guaranteeing the accuracy of information produced by the issuer of the security.
D) none of the above.

Question

Quizplus · Accepted Answer

The presence of a financial market reduces the transaction costs for selling the security, making it easier and more affordable to buy and sell the security. This increased marketability ultimately benefits the issuer of the security, as it makes the security more attractive to potential investors. However, the financial market does not typically insure the price of the security or guarantee the accuracy of the issuer's information.

The Presence of a Financial Market Increases the Marketability of a Financial