Which of the following is an indication of an active market?
A) there are few recent transactions;
B) price quotations vary substantially over time;
C) price quotations vary substantially among market-makers;
D) price quotations are based on current market information.

Question

Quizplus · Accepted Answer

An active market is characterized by the availability of current and frequently updated price quotations, reflecting ongoing trading activity and the presence of buyers and sellers. This ensures that the prices are reflective of the most current market conditions, indicating an active market. Options A, B, and C suggest limited activity, significant price fluctuations, or discrepancies in pricing among market-makers, which are not indicative of an active market.

Which of the Following Is an Indication of an Active