The Quality of a Market can be best judged by which of the following factors:
I.) Liquidity
II.) Transparency
III.) Assurity of completion
I and II only |
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II only |
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I and III only |
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All of the above |
The quality of a market is judged by all of the above factors 1), ii) and iii),
A market should be liquid, that is the stocks can be easily bought and sold.
A market should be transparent, there should be no hidden information from the investors, they should be privided with all the true and unbiased nformation.
A market should provide an assurity that the trades will be completed and the presence of a clearing house assures that there shall be no deault, otherwise the investors should not invest in such a market.
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