The Size of the Spread on Stocks That Have Relatively

question 58

Multiple Choice

The size of the spread on stocks that have relatively little trading is

• A) smaller to reflect the lower degree of uncertainty.
• B) the same as that of stocks with higher volumes of trading.
• C) wider to reflect the higher degree of uncertainty.
• D) not affected by trading volume.

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Definitions:

Informal Conversation

Casual and unstructured spoken exchange between people, often on personal or everyday topics.

Formal Research

Systematic investigation or study into material and sources to establish facts and reach new conclusions in an official, structured manner.

Reliability

The quality or state of being reliable, dependable, or able to be trusted to do or perform as expected.

Qualitative Researchers

Individuals specializing in research methodologies that focus on understanding phenomena through observation and interpretation of non-numerical data.