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Finra Series-7 Exam - Topic 3 Question 74 Discussion

The market theory stating that the small investor is usually wrong is called the:
B) odd-lot theory
A) advance-decline theory
C) Dow theory
D) short interest theory

Finra Series-7 Exam - Topic 3 Question 74 Discussion

Actual exam question for Finra's Series-7 exam
Question #: 74
Topic #: 3
[All Series-7 Questions]

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

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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.


by Rasheeda at Sep 01, 2023, 05:33 PM

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Mickie
9 months ago
I always thought it was just a myth!
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Jestine
9 months ago
Agreed, odd-lot theory makes sense here.
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Francis
10 months ago
Really? Small investors are usually wrong? Sounds fishy.
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Franchesca
10 months ago
I thought it was the Dow theory.
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Alison
10 months ago
It's definitely the odd-lot theory!
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Brock
10 months ago
I’m torn between odd-lot theory and advance-decline theory. I wish I had reviewed those concepts more before the exam!
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Elke
10 months ago
I feel like I’ve seen a question like this before, and I think it was about odd-lot theory. It’s definitely not Dow theory, though.
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Nydia
11 months ago
I remember studying something about small investors being wrong, but I can't recall if it was odd-lot theory or something else.
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Olga
11 months ago
I think the answer might be odd-lot theory, but I'm not completely sure. It sounds familiar from my notes.
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Aleshia
11 months ago
I'm confident the answer is B, the odd-lot theory. That's the market principle that says the small investor is usually on the wrong side of the trade.
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Alishia
11 months ago
I've seen this concept before, but the wording of the question is tripping me up a bit. I'm leaning towards the odd-lot theory, but I want to make sure I'm not missing something in the other options.
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Jacquline
11 months ago
Okay, let me break this down. The small investor being wrong is the key part of the question. I think that points to the odd-lot theory, but I'll double-check the definitions just to be safe.
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Macy
11 months ago
Hmm, I'm not totally sure about this one. I'll have to think it through carefully. The options seem a bit similar, so I want to make sure I understand the differences.
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Lenny
11 months ago
I'm pretty sure this is the odd-lot theory, where the small investor is usually wrong. That's a classic market principle.
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Angella
11 months ago
I'm drawing a blank on the name of this theory. I'll have to make an educated guess based on the options provided.
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Clemencia
11 months ago
The odd-lot theory, that's the one! I remember learning about that in class. Small investors are usually wrong, so that's the market theory they're referring to.
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Whitney
11 months ago
Okay, let me think this through. The question is asking about a market theory related to small investors, so I'm going to carefully read through the options and see which one fits best.
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Sylvie
11 months ago
Hmm, I'm a bit unsure on this one. I know it has something to do with small investors, but I can't quite remember the specific theory name.
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Magda
11 months ago
This one seems pretty straightforward. I'm pretty sure the answer is the odd-lot theory.
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Catarina
11 months ago
Hmm, I'm a little unsure about the picture bullet part. I'll need to read through that section a few times to make sure I understand the process.
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Pauline
11 months ago
This question seems straightforward, I think I can handle it.
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Shannan
11 months ago
Okay, I've got this. The key is to focus on the information that would provide insights into the current state of the Finance Directorate's workforce. Levels of absenteeism, staff turnover, and identification of staffing shortages or excess - those are the three I'll go with.
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