Consider the Following Statements About Exchanges

question 4

Multiple Choice

Consider the following statements about exchanges:
(i) Over-the counter markets have no dealers.
(ii) Auction markets are purely electronic markets.

• A)(i) is correct.
• B)(ii) is correct.
• C)(i) is correct and (ii) is incorrect.
• D)(i) and (ii) are both correct
• E)(i) and (ii) are both incorrect.

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Definitions:

Insider Trading

The trading in shares of a corporation by a person in a corporation who possesses undisclosed privileged information about the corporation.

Tampering Scandal

A situation involving unauthorized alteration or manipulation, often in a legal, sports, or corporate context, that leads to controversy or legal action.

Insider Trade

Buying or selling of a publicly-traded company's stock by someone who has non-public, material information about that stock.

Provincial Securities Act

Legislation that governs the regulation of securities within a specific province, aiming to protect investors and ensure fair and efficient capital markets.