Which of the following(s) is (are) the characterization of dealer market? It improved market efficiency because dealers provide continuous bid and ask prices for securities. The dealer does not hold an inventory of securities. The presence a dealer market does not affect market efficiency because search costs are still high. It is time-consuming to search for a fair deal.

All else equal, an increase in the information asymmetry between informed traders and liquidity providers (limit order traders) is associated with:   a. An increase in limit order book depth   b. A decrease in the bid-ask spread   c. An increase in the profitability of liquidity provision   d. All of the above   e. None of the above

Arbitrage is the practice of making money by simultaneously buying in one market and selling in another.  It takes advantage of price differences between the two or more markets. Give an example and explain how is this possible. Give enough detail that we can understand the basics of the transaction.

Which of the following limits the market from becoming a fully efficient market?   New information takes time to process. Obtaining new information is costly. The existence of closed end investment companies. Both a. and b. are correct. All of the above answers are correct. None of the above answers is correct.