Answered You can hire a professional tutor to get the answer.
Evaluate whether the following actions are likely to increase stock market effi-ciency, decrease it, or leave it unchanged, and explain why.
Evaluate whether the following actions are likely to increase stock market effi-ciency, decrease it, or leave it unchanged, and explain why.
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 ____
