Question

The term efficient markets refers to the idea that _______________.

A. publicly traded companies always file their financial reports on time
B. investors are able to identify underpriced stocks for purchase
C. stocks trade with minimal costs and prices are current and fair to all traders
D. financial information on companies and their stock is only available to efficient traders

Answer 1

Efficient markets refer to the idea that stocks trade with minimal costs and prices are current and fair to all traders.

Step-by-step explanation:

The term efficient markets refers to the idea that stocks trade with minimal costs and prices are current and fair to all traders. In an efficient market, information about stocks is widely available to all participants, and prices quickly adjust to reflect new information. This means that it is difficult for individual investors to consistently find underpriced stocks or to gain an unfair advantage.