Stocks of small firms are more volatile than those of large firms and might not be liquid.

Name: Stocks of small firms are more volatile than those of large firms and might not be liquid.
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Question

Quizplus · Accepted Answer

Small firms usually have less established businesses and financial stability, making their stocks more sensitive to market fluctuations and news. Additionally, small firms may have lower trading volumes and fewer buyers and sellers, making their stocks less liquid.

Stocks of Small Firms Are More Volatile Than Those of Large