The Dow Theory Describes Stock Prices as Moving in Trends

question 77

Multiple Choice

The Dow Theory describes stock prices as moving in trends analogous to the movement of water.Which of the following statements is not true?

• A) Major trends resemble tides.
• B) Intermediate trends resemble waves.
• C) Short-run movements are like ripples.
• D) Waves are the most important.
• E) None of the above (that is, all are true statements)

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Definitions:

Excess (Deficiency)

The difference between what was budgeted or expected in financial projections and the actual amount received or spent, indicating a surplus or shortfall.

Master Budget

A comprehensive financial planning document that consolidates all of an organization's budgets for various departments or activities.

Budgeted Selling Price

The projected price at which a product is expected to be sold, factored into business planning and budgeting processes.

Raw Materials

Basic materials and components used at the beginning of the production process to manufacture goods.