How do successful speculators reduce the by Dr. Robert Murphy @Mises

Question 92 / 96: *How do successful speculators reduce the volatility of stock prices?

Answer:

A stock price is volatile when it bounces around a lot, rather

than moving within a narrow band. Stock speculators, if they

are profitable, tend to reduce the band in which a stock price

moves. If a stock price is above where it "should" be, the astute

speculator will sell it, pushing down the price. If the price is

originally too low, the astute speculator will buy the stock,

pushing up the price.

Sorry No Instant Evalutaion available for this question

<< First < Previous Flashcard Next > Last >> Test Home Page

https://www.jobilize.com/capitalism-the-market-economy-by-dr-robert-murphy-mises

Capitalism: The Market Economy

Access: Public Peer Review

Dr.Robert MurphyAssociated Scholar

Mises Institute

USA

Attribution: Dr. Robert P. Murphy, Lessons for the Young Economist. (Mises Institute), http://mises.org/document/6215/Lessons-for-the-Young-Economist (Accessed 04 April, 2014). License: Creative Commons BY

Ask

	English Vocabulary By Jordon Humphreys Start Quiz
	12 Sociology 12 Gender, Sex, and Sexuality MCQ By OpenStax Start Quiz
	Neuropsychology Midterm By Kimberly Nichols Start Test
	7 Java Messaging Service By JavaChamp Team Start Quiz
	Foundations of Software Engineering By Kevin Amaratunga Start Quiz
	10 Physiotherapy Modalities-Thermo By Rhodes Start Quiz
	1 Human A&P 2- Test 1 By Madison Christian Start Flashcards
	1 Biology 01 The Study of Life MCQ By OpenStax Start Quiz
©flickr: Luis	Atoms By Carly Allen Start Quiz
	17 Sociology 17 Government and Politics MCQ By OpenStax Start Quiz

Copy and paste the following HTML code into your website or blog.