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FINRA Series 7

Category - Series 7

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The market theory stating that the small investor is usually wrong is called the:

advance-decline theory
odd-lot theory
Dow theory
short interest theory

Explanation

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 raito of small businmess sales is a contrary indicator of market direction.

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FINRA Series 7

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FINRA Series 7

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