Chapter 9 - Market Information And Research Flashcards
What is the key idea behind support-resistance theory?
Understanding the future relies on understanding the past
Give an example of a leading indicator, a lagging indicator and a coincident indicator…
Leading - stock markets/money supply
Lagging - unemployment numbers/consumer confidence
Coincident - GDP/Industrial production
When must an investor’s change in shareholding become notifiable?
Once a stake reaches 3%, any increases to a stake that take it across a full percentage point and are at are notifiable.
An investment fund’s interest is notifiable only when it is beyond 5% and a market maker’s when it is more than 10%.
In technical analysis, a ‘head and shoulders’ is a chart pattern. What would be expected to happen on the right shoulder if a price drops below the neckline?
A sustained price drop
