Which of the Following Does the Model Code Not Recommend

question 581

Multiple Choice

Which of the following does the Model Code not recommend to prevent technical errors by etrading devices?

• A) A manual "kill button" to disable the system's ability to trade and cancel all resting orders.
• B) An 'inbound message rate" feature that monitors the number of confirmation messages that are sent from trading venues within a specific time period.
• C) A "repeated automated execution throttle" monitoring the frequency of strategies that are filled and then re-entered into the market without human intervention through automated trading systems.
• D) A "fat-finger quantity" feature limiting the size of orders that can be sent from the trading systems and preventing order quantities above the fat-finger limit from leaving the system.

Understand the concept of economic efficiency and how monopolies compare to perfect competitors in this aspect.

Discuss the significance of patents, trademarks, and control over essential resources in creating and maintaining monopoly power.

Understand the pricing strategies and demand considerations unique to monopolies.

Identify and explain the barriers to entry that can lead to monopoly power.

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Definitions:

Owner's Equity

The residual interest in the assets of a company after deducting liabilities, representing the owner's claim on the business assets.

Expenses

Costs incurred in the process of earning revenue, typically classified as operating or non-operating expenses.

Revenue

The total income generated from normal business operations, including the sale of goods and services before any expenses are deducted.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the owner's claim on the company's assets.