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Question
What is the impact on a company’s share price of trading done by noise traders?
a) Noise traders buy and sell a great deal, their volume of trading is high, and the long-term effect on share price is low.
b) Noise traders buy and sell a great deal, their volume of trading is high, and the long-term effect on share price is high.
c) Noise traders buy and sell a small amount, their volume of trading is low, and the long-term effect on share price is low.
d) Noise traders set the boundaries for a stock’s intrinsic value.
Answer
This answer is hidden. It contains 18 characters.
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