Stewart is a fellow finance student at your school who is addicted to day trading and thus buys and sells stocks between classes and over his lunch break. He never has time to really analyze a security so just trades the stock symbols that other investors appear to be trading. Stewart is which one of the following?
A) Noise trader.
B) Arbitrageur.
C) Crasher.
D) Regret averter.
E) Myopic loss averter.

Question

Quizplus · Accepted Answer

Stewart is a noise trader because he makes trades based on market noise and trends rather than on fundamental analysis or long-term investment strategies. His trading behavior is impulsive and based on what others appear to be doing, which is characteristic of noise traders.

Stewart Is a Fellow Finance Student at Your School Who