The greater the number of buyers and sellers with access to securities markets, the
A) higher the true equilibrium price will be.
B) higher the yields on securities will be.
C) lower the yields on securities will be.
D) closer securities prices will be to the true equilibrium price.

Question

Quizplus · Accepted Answer

When there are more buyers and sellers with access to securities markets, there is greater competition and information available, which leads to more efficient pricing of securities. This leads to securities prices being closer to their true equilibrium price. Therefore, choice D is the best answer.

The Greater the Number of Buyers and Sellers with Access