Which of the following statements is incorrect? Group of answer choices Private markets are organized financial markets where the general public buys and sells initial public offerings (IPOS) through their stockbrokers, and the NYSE, for example, is a private market. All the answers are correct except one. The Fed manages a key component of the nation's economy by conducting monetary policy, which affects how much money is available in the economy. Few people really believe that market prices of public securities reflect all available information because it is widely accepted that insiders have information that is not reflected in the security prices, and therefore the concept of strong-form market efficiency represents the ideal case rather than the real world. In secondary markets, brokers are market specialists who bring buyers and sellers together when a sale takes place, and they execute the transaction for their client and are compensated for their services with a commission fee.

Which of the following statements is incorrect? Group of answer choices Private markets are organized financial markets where the general public buys and sells initial public offerings (IPOS) through their stockbrokers, and the NYSE, for example, is a private market. All the answers are correct except one. The Fed manages a key component of the nation's economy by conducting monetary policy, which affects how much money is available in the economy. Few people really believe that market prices of public securities reflect all available information because it is widely accepted that insiders have information that is not reflected in the security prices, and therefore the concept of strong-form market efficiency represents the ideal case rather than the real world. In secondary markets, brokers are market specialists who bring buyers and sellers together when a sale takes place, and they execute the transaction for their client and are compensated for their services with a commission fee.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter14: Transaction Costs, Imperfect Information, And Behavioral Economics

Section: Chapter Questions

Problem 8QFR

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