Explain Why a Low-Priced,low Trading Volume Stock Is More Apt

question 11

Essay

Explain why a low-priced,low trading volume stock is more apt to present limits to arbitrage than is a high-priced,high trading volume stock.

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Definitions:

Credit Card Bill

A statement issued monthly by the credit card company that details the transactions, outstanding balance, and minimum payment due by the cardholder.

Billing Statement

A summary of transactions, payments, credits, and fees on an account over a specific period, typically issued periodically by creditors to debtors.

Truth In Lending Act

A United States federal statute aimed at fostering informed consumer credit utilization through mandating the disclosure of its terms and expenses.

Extending Credit

The act of granting a customer the ability to purchase goods or services now and pay for them at a later date, based on trust that payment will be made in the future.