If only a small volume of trading can be absorbed without producing wide price swings, a market is
A) liquid.
B) thin.
C) broad.
D) resilient.

Question

Quizplus · Accepted Answer

A market that can only absorb a small volume of trading without producing wide price swings is referred to as a "thin" market. A thin market lacks liquidity, making it difficult to buy and sell securities without significantly affecting prices. Therefore, option B is the correct answer.

If Only a Small Volume of Trading Can Be Absorbed