Question

Research has shown that well-developed capital markets such as the London Stock Exchange and the New York Stock Exchange are generally found to be at least ____ efficient.

Answer 1

Well-developed capital markets like the London Stock Exchange and New York Stock Exchange are generally semi-efficient, operating based on supply and demand with regulated trading activity and broad influence on economic decisions.

Step-by-step explanation:

Research has indicated that well-developed capital markets, such as the London Stock Exchange and the New York Stock Exchange (NYSE), are generally found to be at least semi-efficient. These markets are exemplified by their vast size, comprehensive regulations, and the significant amount of trading activity that occurs within them. The NYSE, particularly, stands out as one of the most influential stock exchanges globally, as noted on Wall Street in New York City, and is a prime representation of a market where goods and services are supplied based on demand. Economic decisions in such markets are determined by market forces rather than governments, with income derived from one's ability to convert resources, such as labor, into something valued by society. In terms of stock market measures, the New York Stock Exchange monitors the performance of traded stocks, while other markets like Nasdaq feature a variety of stocks, including a substantial amount of technology stocks.