Which of the Following Is Said to Occur When Traders

question 99

Multiple Choice

Which of the following is said to occur when traders move like a herd,all in the same direction and at the same time,in response to each others' perceived actions?

• A)Fire-sale
• B)Flight to safety
• C)Bandwagon effect
• D)Fisher effect

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Definitions:

Stock Dividend

is a dividend payment made in the form of additional shares rather than cash, potentially diluting the value of each share but not the total value.

Owners

Individuals or entities that possess legal rights and control over a company, property, or asset.

New Shares

Securities that represent ownership in a corporation, issued to the public for the first time.

Stock Splits

A corporate action that increases the number of a company's shares by dividing each share, which typically decreases the share price but does not change the overall market capitalization.