Question
Hi I need help deciding on A-D. Decide and explain whether the following actions are likely to increase stock market efficiency, decrease it, or leave
Hi I need help deciding on A-D.
Decide and explain whether the following actions are likely to increase stock market efficiency, decrease it, or leave it
a. The government imposes a transaction tax of 1% on all stock transactions.
Increase efficiency ____Decrease efficiency ____Leave unchanged ____
b. The securities exchange regulators impose a restriction on all short sales to
prevent rampant speculation.
Increase efficiency ____Decrease efficiency ____Leave unchanged ____
c. An options market, trading call and put options, is opened up, with options traded on many of the stocks listed on the exchange.
Increase efficiency ____Decrease efficiency ____Leave unchanged ____
d. The stock market removes all restrictions on foreign investors acquiring and holding stock in companies.
Increase efficiency ____Decrease efficiency ____Leave unchanged ____
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