All of the following are necessary conditions for an efficient market except _________.
A) Low trading or transaction costs
B) Many buyers and sellers
C) Free and readily available information to market participants
D) Low stock prices

Question

Quizplus · Accepted Answer

Low stock prices are not necessary for an efficient market. In fact, stock prices can be high or low and the market can still be efficient as long as the other necessary conditions are met.

All of the Following Are Necessary Conditions for an Efficient