Which of the Following Factors Does not indicate Market Liquidity

question 16

Multiple Choice

Which of the following factors does not indicate market liquidity?

• A) Number of shareholders
• B) High price volatility
• C) Number of shares outstanding
• D) Number of shares traded
• E) Institutional interest

---

Definitions:

Fixed Cost Sources

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Financial Risk

The chance of incurring financial losses from an investment or business activity.

Operating Leverage

A measure that shows how revenue growth translates into growth in operating income, highlighting the impact of fixed costs.

Financial Performance

An assessment of how well a company can use assets from its primary mode of business and generate revenues.