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Quiz: CNBC QUIZ: Stock Market Jargon

Question 4 of 10

What term refers to a temporary price that traders mistakenly assume is a stock’s low point?

  1. False Bottom
  2. False Flag
  3. Glass Bottom
  4. Rain Gutter
Correct!

When a stock reaches a low price and stays there for a while, traders often assume that it’s gone as low as it’s going to go. However, if it decreases further, traders will claim that the previous price point was a “false bottom.”

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