Securities exchanges create efficient markets that do all of the following EXCEPT
A) ensure a market in which the price reflects the true value of the security.
B) allocate funds to the most productive uses.
C) control the supply and demand for securities through price.
D) allow the price to be determined by supply and demand of securities.

Question

Quizplus · Accepted Answer

Securities exchanges do not control the supply and demand for securities through price; rather, they provide a platform where prices are determined by the natural forces of supply and demand.

Securities Exchanges Create Efficient Markets That Do All of the Following