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What Is the Impact on a Company's Share Price of Trading

Question 16

Multiple Choice

What is the impact on a company's share price of trading done by noise traders?


A) Noise traders buy and sell a great deal,their volume of trading is high,and the long-term effect on share price is low.
B) Noise traders buy and sell a great deal,their volume of trading is high,and the long-term effect on share price is high.
C) Noise traders buy and sell a small amount,their volume of trading is low,and the long-term effect on share price is low.
D) Noise traders set the boundaries for a stock's intrinsic value.

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