Trades on the NYSE Are Generally Completed by Having a Brokerage

question 15

True/False

Trades on the NYSE are generally completed by having a brokerage firm acting as a "dealer" buy securities and adding them to its inventory or selling from its inventory. The Nasdaq, on the other hand, operates as an auction market, where buyers offer to buy, and sellers to sell, and the price is negotiated on the floor of the exchange.

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Definitions:

Herfindahl Index

An economic measure of market concentration that sums the squares of the market shares of all firms within the industry.

Conglomerate Merger

A union of companies engaged in entirely different businesses, often to diversify portfolio risks and leverage managerial expertise across industries.

Antitrust Scrutiny

The examination and monitoring of companies and their practices by government agencies to ensure they do not engage in anti-competitive behavior, violating antitrust laws.

Horizontal Merger

A merger between companies that are in direct competition with each other, operating in the same industry and at the same stage of production.