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One of the Risks of Using E-Mail Communication and Other

question 14

True/False

One of the risks of using e-mail communication and other electronic forms of communication is the often short time span between a thought and its electronic transmission.


Definitions:

Price Concessions

Discounts or adjustments in the price of a good, service, or security, often granted to finalize a deal.

Effective Spread

The measure of the actual cost of a trading transaction, calculated as the difference between the executed trade price and the midpoint of the best bid and ask quotes at the time of the trade.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry.

Tick Size

The minimum price movement of a trading instrument in the market, which can affect the precision of price and order placement.

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