Which of the Following Is True of Stock Exchanges

question 80

Multiple Choice

Which of the following is true of stock exchanges?

• A) Electronic trading began with the establishment of the over-the-counter market.
• B) Each exchange establishes its own requirements for the securities it lists.
• C) The stocks of privately traded corporations are listed and traded on these exchanges.
• D) Apart from the annual fee, exchanges do not require firms to pay any other fee for the stock listing.

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Definitions:

NYSE

The New York Stock Exchange, one of the largest stock exchanges in the world, where stocks of publicly-held companies are bought and sold.

TSX

Toronto Stock Exchange, the primary Canadian stock exchange where stocks, bonds, and other securities are bought and sold.

Taxation

The imposition of financial charges or other levies upon a taxpayer by a governmental organization in order to fund various public expenditures.

Limited Liability

A legal principle that limits an investor's losses to the amount of their investment, protecting personal assets beyond the investment in the company.