Stock Market Breadth Index

Stock Market Breadth Index

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Question

The ________ index shows the number of stocks advancing plus one-half the number unchanged, divided by the total number of issues traded.

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D

By definition: The diffusion index shows the number of stocks advancing plus one-half the number unchanged, divided by the total number of issues traded. Such an index gives an idea of how many individual stocks are advancing as a percentage of all the individual stocks in a composite index.