Asked by Aiysha Edwards on Jun 05, 2024
Verified
The lessons from capital market history tell us that the TSX is an inefficient market.
TSX
The Toronto Stock Exchange, a major stock exchange in Canada where stocks of companies are bought and sold.
Inefficient Market
A market where securities' prices do not fully reflect all available information, leading to potential for abnormal returns.
- Comprehend market efficiency and the implications for stock pricing and investment strategy.
Verified Answer
KP
Kiara PereaJun 07, 2024
Final Answer :
False
Explanation :
Capital market history shows that while markets can experience inefficiencies, the TSX (Toronto Stock Exchange) operates under a regulatory framework designed to ensure fairness and transparency, making it generally efficient in reflecting available information in stock prices.
Learning Objectives
- Comprehend market efficiency and the implications for stock pricing and investment strategy.
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