The ____ the trading volume of a stock, the ____ the spread.
A)larger; wider
B)larger; narrower
C)lower; narrower
D)None of these are correct.

Name: The ____ the trading volume of a stock, the ____ the spread. A)larger; wider B)larger; narrower C)lower; narrower D)None of these are correct.
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Question

Quizplus · Accepted Answer

The larger the trading volume of a stock, the narrower the spread tends to be. This is because high trading volume indicates high liquidity, allowing trades to be executed closer to the bid and ask prices.

The ____ the Trading Volume of a Stock, the ____

The the Trading Volume of a Stock, the