Internet Sites Such as EBay Make It Easier for Sellers

question 1

Multiple Choice

Internet sites such as eBay make it easier for sellers and buyers to find one another and, by doing so,

• A) reduce transactions costs.
• B) increase transaction costs.
• C) reduce the number of exchanges that occur.
• D) lower the value created by the goods and services available.

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Definitions:

Market Order

A type of trading order that instructs to buy or sell a security immediately at the current market price.

Discretionary Order

An order given to a broker allowing them discretion on the execution timing and price of a trade, within certain pre-established parameters.

Limit Order

An order to buy or sell a security at a specific price or better.

Maximum Possible Loss

The worst-case scenario loss that an investment or portfolio could suffer during a specified period.