Series 7 - General Securities Representative Exam
A trader that follows the odd-lot theory sees orders of 50 shares, 75 shares, 83 shares, 90 shares being sold in a stock on the Time and Sales data. What would the trader do?
Buy the stockA
Sell the stockB
Check the short interestC
Short the stock, buy warrantsD
Odd lot theorists believe that the small trader is always wrong. They then do the opposite. In this case, the theorist would buy the stock since the Time and Sales data shows the shares are being sold