Superior analysts are encouraged to concentrate their efforts in \"middle tier\"

Question

Superior analysts are encouraged to concentrate their efforts in "middle tier" stocks. This is recommended because

it works to minimize taxes for the client.

only individuals deal in the middle tier stocks.

prices may not adjust quite as rapidly for middle tier stocks as they do in the top tier; therefore, the chances of temporarily undervalued securities are greater.

it includes companies too small to be considered by institutions.

technical analysts never look at "middle tier" stocks.

it works to minimize taxes for the client.

only individuals deal in the middle tier stocks.

prices may not adjust quite as rapidly for middle tier stocks as they do in the top tier; therefore, the chances of temporarily undervalued securities are greater.

it includes companies too small to be considered by institutions.

technical analysts never look at "middle tier" stocks.

Explanation / Answer

Prices may not adjust quite as rapidly for middle tier stocks as they do in the top tier; therefore the chances of temporarily undervalued securities are greater.

middle tier stocks are the stocks of the company that are large enough that can be acquired most of the institutional investors

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