Name the benefits derived from the existence of stock exchanges
What will be an ideal response?
Providing a continuous market: it may be the most important function of an organized security exchange. A
continuous market provides a series of continuous security prices.
Establishing and publicizing fair security prices: An organized exchange permits security prices to be set by
competitive forces. The bidding process flows from the supply and demand underlying each security. This means the
specific price of a security is determined in the manner of an auction. In addition, the security prices determined at
each exchange are widely publicized.
Helping business raise new capital: Because a continuous secondary market exists, it is easier for firms to float, or issue,
new security offerings at competitively determined prices.
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Indicate whether this statement is true or false.
How does blind search differ from optimization?
A) Blind search cannot result in optimal solutions whereas optimization methods do. B) Blind search usually does not conclude in one step like some optimization methods. C) Blind search is usually a more efficient problem solving approach than optimization. D) Blind search represents a guided approach while optimization is unguided.