According to the odd-lot theory:
A) large investors are more likely to buy or sell odd lots.
B) the odd lot investors are usually wrong in their actions at market peaks and troughs.
C) an increase in odd-lot purchases is bullish.
D) All of the above are true for odd-lot theory.

Question

Quizplus · Accepted Answer

The odd-lot theory is based on the belief that small investors (who are more likely to buy or sell odd lots) are usually wrong about market directions at critical turning points. Therefore, when odd-lot sales increase, it might indicate a market bottom, and when odd-lot purchases increase, it might suggest a market peak.

According to the Odd-Lot Theory