In the Absence of an Effective Short-Selling Mechanism, Security Prices

Multiple Choice

In the absence of an effective short-selling mechanism, security prices will tend to be biased toward the ________, causing a market to depart from the standards of a perfect price-setting situation.

A) view of more pessimistic investors
B) view of the market maker
C) view of more optimistic investors
D) view of the market taker