Program Trading Involves

question 108

Multiple Choice

Program trading involves

• A)online trading services provided to customers by electronic trading securities firms.
• B)computer-driven buying or selling of baskets of 15 or more stocks by institutional traders.
• C)purchase and sale of assets that are potentially but not necessarily equivalent.
• D)buying blocks of securities in anticipation of some information release.
• E)providing a platform for customers to trade without the use of a broker.

---

Definitions:

Excess Capacity

A scenario where a firm’s production capability exceeds the demand for its product, often leading to inefficiency and increased costs.

Product Variation

The process of making slight adjustments to a product's features, design, or offerings to differentiate it from competitors’ products.

Average Total Cost

The total cost of production divided by the number of units produced, representing the average cost per unit.

Economic Profit

A quantification of the surplus generated after subtracting both the explicit and implicit costs from total revenue, indicating the true profitability of a business.