If an Investor Buys a Stock When Its Price Has

question 41

Multiple Choice

If an investor buys a stock when its price has increased 2 percent from its previous price, the investor is employing:

• A) a contrarian indicator.
• B) a filter rule.
• C) a sentiment indicator.
• D) relative strength analysis.

---

Definitions:

Securities Exchange Act

A U.S. federal law regulating the trading of securities, including stocks and bonds, to protect investors against malpractice.

Market Manipulation

Actions designed to deceive investors by controlling or artificially affecting the price of securities.

General Partner

A member of a partnership who has unlimited liability and is active in the daily management of the business.

Insider

An individual who has access to confidential or non-public information about a company, primarily due to their relationship with the company.