Question

Which of the following laws would increase the liquidity of stocks and mutual funds?

a law reducing fees and commissions for buying and selling stocks
a law allowing people to buy and sell stock shares as fast as technology allows
a law forbidding trading stock if its value changes too fast
a law allowing trades for amounts as low as $10

Answer 1

The correct answer is - a law reducing fees and commissions for buying and selling stocks.

Explanation:

Which of the following laws would increase the liquidity of stocks and mutual funds?

The answer is - a law reducing fees and commissions for buying and selling stocks.

When the fee and commission for buying and selling ends or reduces, people will start converting their stocks in cash as they won't have to give anyone any fee. Due to high commission rates, people avoid cashing stocks until there is some urgency like price is falling etc.

Answer 2

The law that would increase the liquidity of stocks and mutual funds would be a law reducing fees and commissions for buying and selling stocks.