The Great Majority of Transactions on the NYSE Are Executed

question 7

Multiple Choice

The great majority of transactions on the NYSE are executed

• A) automatically through electronic technology.
• B) on the trading floor by brokers known as specialists.
• C) by dealers known as market makers.
• D) by auction in trading areas known as pits.

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Definitions:

Annually

Happening annually.

EAR

The Effective Annual Rate, a measurement of interest that takes into account the effect of compounding over the period of time it is applied.

Compounded Monthly

The process of calculating interest on an initial principal, which also includes all of the accumulated interest from previous periods on a loan or investment, with the compounding occurring on a monthly basis.

Effective Annual Rate

The interest rate on an investment or loan that considers the effects of compounding over a given time period.