The downturn in the prices of shares on stock markets is a highlight of?

A. efficient allocation of resources
B. the invisible hand
C. the regulatory nature of the market
D. consumer rationality

Correct Answer:

Option C – the regulatory nature of the market

Explanation

What is a regulated market? A regulated market is one that is supervised or controlled to some extent by the government or established public body. Most financial trading exchanges such as stock markets are regulated.

The federal government regulates much of the stock market’s activity to protect investors and ensure the fair exchange of corporate ownership on the open markets.