Question

The lack of adequate trading volume in stock that may ultimately lead to its ability to produce excess returns is referred to as the ____________________.A. January effectB. liquidity effectC. neglected-firm effectD. P/E effect

Answer 1

Answer:

B. liquidity effect

Explanation:

Liquidity effect -

According to liquidity effect , how the reduction or the increment in the presence of the consumer spending and the interest rates , and the price stability and investment is known as the liquidity effect .

In United States , the Federal Reserve is responsible for controlling the money market and the aspects altering it .

hence , from the question ,

The correct term for the given statement is B. liquidity effect .