Factors contributing to financial market segmentation include each of the following EXCEPT
A) different investor expectations
B) different legal, political, or tax systems
C) informational barriers
D) rational investors
E) transactions costs

Question

Quizplus · Accepted Answer

Rational investors would not contribute to financial market segmentation as they would make decisions based on the same information and factors regardless of their location or legal/political system. The other factors listed (different investor expectations, legal/political/tax systems, informational barriers, and transactions costs) can all contribute to market segmentation.

Factors Contributing to Financial Market Segmentation Include Each of the Following