The "depth" of a market is defined by

Question

Quizplus · Accepted Answer

The depth of a market is determined by the number of participants (i.e. buyers and sellers) actively trading in the market. This can also be called market liquidity, or the ease with which assets can be bought or sold without affecting the market price. A market with many active participants is said to have greater depth, meaning there are more opportunities for buying and selling at fair prices. The depth of a market refers to the amount of volume – or number of buyers and sellers – present in a certain security. It reflects the level of liquidity present in the market, with deeper markets providing more liquidity and easier trades. Thus, choice B is the correct answer.

The "Depth" of a Market Is Defined by