Financial Market Flashcards
1
Q
Financial market
A
Where buyers and sellers can trade financial assets
2
Q
Financial market failure
A
Where free financial markets fail to allocate financial products of the socially optimum level of output
3
Q
Adverse selection
A
When most likely buyers are those the buyers prefer not to sell to due to imperfect info (health insurance sold to unhealthy people
4
Q
Market rigging
A
Where traders collide to manipulate markets and make profits
