Q9. “Market breadth indicators analyze the number of stocks advancing relative to those that are declining in a given index or on a stock exchange. Positive market breadth occurs when more stocks are advancing than are declining. This suggests that the bulls are in control of the market's momentum and helps confirm a price rise in the index. Conversely, a disproportional number of declining securities is used to confirm bearish momentum and a downside move in the stock index". Explain it by completing the below mentioned table and how the calculation of this table supports to understand the market trends? Day Decline Daily Difference Breadth(difference cumulative) Advance Monday Tuesday Wednesday 600 300 450 500 350 600 Thursday Friday 580 380 700 300

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Q9. “Market breadth indicators analyze the number of stocks advancing relative to those that are
declining in a given index or on a stock exchange. Positive market breadth occurs when more stocks are
advancing than are declining. This suggests that the bulls are in control of the market's momentum and
helps confirm a price rise in the index. Conversely, a disproportional number of declining securities is
used to confirm bearish momentum and a downside move in the stock index". Explain it by completing
the below mentioned table and how the calculation of this table supports to understand the market trends?
Day
Advance
Decline
Daily Difference
Breadth(difference
cumulative)
Monday
Tuesday
Wednesday
600
300
450
500
350
600
380
Thursday
Friday
580
700
300
Transcribed Image Text:Q9. “Market breadth indicators analyze the number of stocks advancing relative to those that are declining in a given index or on a stock exchange. Positive market breadth occurs when more stocks are advancing than are declining. This suggests that the bulls are in control of the market's momentum and helps confirm a price rise in the index. Conversely, a disproportional number of declining securities is used to confirm bearish momentum and a downside move in the stock index". Explain it by completing the below mentioned table and how the calculation of this table supports to understand the market trends? Day Advance Decline Daily Difference Breadth(difference cumulative) Monday Tuesday Wednesday 600 300 450 500 350 600 380 Thursday Friday 580 700 300
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