Which of the following is NOT a necessary condition for an efficient market?
A)Many buyers and sellers
B)No prohibitively high barriers to entry
C)Free and readily available information available to all participants
D)No trading or transaction costs

Question

Quizplus · Accepted Answer

While having no trading or transaction costs can improve market efficiency, it is not a necessary condition. In fact, some markets (such as the stock market) may have fees or commissions for buying and selling, but are still considered efficient. The other three options are necessary conditions for an efficient market.

Which of the Following Is NOT a Necessary Condition for an Efficient