Advances and declines are associated with market
A) efficiency.
B) position.
C) diffusion.
D) depth.
E) breadth.

Question

Quizplus · Accepted Answer

Advances and declines in the stock market are typically used as a measure of market breadth, which is the number of stocks that are increasing (advancing) or decreasing (declining) in price at a given time. Therefore, the best choice is E, which refers specifically to the breadth of the market. The other options are not as directly related to advances and declines in the stock market. Market efficiency refers to the speed and accuracy at which information is reflected in stock prices, whereas position, diffusion, and depth are not commonly used in reference to market trends.

Advances and Declines Are Associated with Market