One Outcome from the SEC Investigation of the "Flash Crash

question 20

Multiple Choice

One outcome from the SEC investigation of the "Flash Crash of 2010" was

• A)a prohibition of short selling.
• B)higher margin requirements.
• C)approval of new circuit breakers.
• D)establishment of electronic communications networks (ECNs).

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Definitions:

Behavior

The actions or reactions of an individual, usually in relation to the environment, which can be observed and measured externally.

Prejudice

Preconceived opinions or judgments towards people or groups without sufficient knowledge, often based on stereotypes.

Cooperate

The act of working together with others towards a common goal or purpose.

Effort Justification

A phenomenon where individuals attribute a higher value to an outcome that required a significant effort to achieve, as part of cognitive dissonance theory.