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Describe how momentum traders act as an amplification on markets. Part 4 A. Unlike normal investors momentum traders provide resources directly to firms. This allows
Describe how momentum traders act "as an amplification on markets." Part 4 A. Unlike normal investors momentum traders provide resources directly to firms. This allows successful firms to become even more profitable. B. Their trades may increase demand for stocks when stock prices are rising causing even higher prices, and may lower demand for stocks when stock prices are falling causing even lower prices. C. Since they buy stocks in a chosen company whether stock prices are increasing or decreasing, momentum traders always push stock prices upward when they are actively trading. D. Since momentum traders focus on buying bonds in firms whose stock prices are increasing, they are able to amplify the money being lent to firms
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