The odd lot trading indicator assumes that
A) odd-lot traders are unsophisticated and time their decisions poorly.
B) odd-lot traders are sophisticated and tend to buy at low points and sell when stocks are high.
C) are good market indicators because the actions of small investors tend to confirm bearish or bullish trends.
D) odd-lot purchases indicate that high priced stocks like Apple and Berkshire Hathaway are in demand.

Question

Quizplus · Accepted Answer

The odd lot trading indicator is based on the assumption that odd-lot traders (those who buy in amounts less than the standard lot of 100 shares) are generally unsophisticated investors who tend to time their market decisions poorly. This assumption is used to interpret odd-lot trading data as a contrarian indicator.

The Odd Lot Trading Indicator Assumes That