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Finra Exam Series-7 Topic 3 Question 74 Discussion
Actual exam question for
Finra's
Series-7 exam
Question #: 74
Topic #: 3
[All Series-7 Questions]
Topic #: 3
The market theory stating that the small investor is usually wrong is called the:
Suggested Answer:
B
The market theory stating that the small investor is usually wrong is called the odd-lot theory. The concept behind this theory is that when small lot sales are high, it is a good time to buy, as a high ratio of small business sales is a contrary indicator of market direction.
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