The on Balance Volume (OBV)indicator

question 22

Multiple Choice

The on balance volume (OBV) indicator

• A) is a key leading indicator of future market movements.
• B) is a contradictory indicator.
• C) relates trading volume to the advance-decline spread.
• D) is used to confirm price trends.

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Definitions:

Cash Inflows

Money or money's worth received by a business during a period, arising from various sources such as operations, financing, and investing activities.

Discount Rate

The interest rate that is employed to figure out the present value of future cash flows during discounted cash flow analysis.

Required Rate

The minimum return an investor expects to achieve when investing in a particular asset, taking into account its risk level.

Annual Cash Flows

Annual cash flows represent the net amount of cash and cash equivalents being transferred into and out of a business in a specific fiscal year, reflecting operational, investing, and financing activities.