Turnover Is Inversely Related to the Costs of Trading Stocks

question 17

Multiple Choice

Turnover is inversely related to the costs of trading stocks because

• A) high trading costs cause investors to trade more.
• B) low trading costs cause investors not to trade.
• C) high trading costs cause investors to trade less.
• D) low trading costs cause investors not to trade more.

---

Definitions:

Correctness

The degree to which a system or component is free from faults in its specification, design, and implementation.

Accuracy Issues

Refers to problems or discrepancies in the correctness or precision of data, results, or measurements.

Ownership

The legal right of possessing, using, and managing an asset or property.

Information

Data that is processed, organized, or structured in a way that is meaningful or useful to those who receive or use it, often facilitating decision-making or problem-solving.