A-D.

Hi I need help deciding on A-D.

Decide and explain whether the following actions are likely to increase stock market efficiency, decrease it, or leave it

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 ____

 
"Looking for a Similar Assignment? Order now and Get 10% Discount! Use Code "Newclient"