Arianna is a congresswoman concerned about financial crises and the stock market. She proposes a law that eliminates short-term stock trading by requiring investors to hold onto shares for at least three years. This law would cause stocks on the market to have _____.

Select the best answer from the choices provided.
higher liquidity but lower volatility
higher liquidity and higher volatility
lower liquidity and lower volatility
lower liquidity but higher volatility

Question

Arianna is a congresswoman concerned about financial crises and the stock market. She proposes a law that eliminates short-term stock trading by requiring investors to hold onto shares for at least three years. This law would cause stocks on the market to have _____. 


Select the best answer from the choices provided.
higher liquidity but lower volatility
higher liquidity and higher volatility
lower liquidity and lower volatility
lower liquidity but higher volatility

helder_edwin · Answer

C.