Which of These Connect Major Brokerages and Individual Traders Virtually

question 91

Multiple Choice

Which of these connect major brokerages and individual traders virtually using the Internet,so that trades can be made directly without going through an intermediary?

• A)Open market operations
• B)Electronic communications networks
• C)Nondepository financial institutions
• D)Traditional brick-and-mortar online transactions

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Definitions:

Stop-Buy Order

An order to purchase a security once its price surpasses a particular point, typically to limit a loss or protect a profit on a short sale.

Provide Liquidity

To provide liquidity means to make assets easily convertible into cash or to facilitate the ease of buying or selling assets in the market without affecting their price significantly.

Dealers

Individuals or entities that act as principals in trading securities, buying and selling for their own accounts.

Street Name

Describes securities held by a broker on behalf of a client but registered in the name of the firm.