Many Analysts Think Electronic Communications Networks (ECNs) Will Become Important

question 14

Multiple Choice

Many analysts think Electronic communications networks (ECNs) will become important executors of exchange-traded stocks because

• A)they cater to institutional investors.
• B)they will have an expanded presence in NASDAQ.
• C)they offer low transaction costs and anonymity to large investors.
• D)they seek out the small investor.

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Definitions:

Assembly

The process of putting together various components or pieces to build a finished product.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to estimate the cost of manufacturing overhead for a specific activity base.

Machine-Hours

An indicator of the time spent in production, calculating the duration in hours that machinery is active during the manufacturing cycle.

Direct Labor-Hours

The accumulated hours spent by workers directly involved in manufacturing activities.