Extended Trading Hours and Off-Premises Dealing Can Involve Additional Hazards

question 120

Multiple Choice

Extended trading hours and off-premises dealing can involve additional hazards, the avoidance of which requires clear controls. The Model Code prescribes best market practice. Which of thefollowing is true?

• A) Off-premises dealing should be strictly prohibited.
• B) After-hours trading should be prohibited.
• C) Deals transacted after normal business hours or off-premises should only be undertaken on mobile phones approved by management.
• D) Deals transacted after normal business hours or off-premises either by mobile phones or any other equipment should only be undertaken with the approval of management.

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Definitions:

Negative Reinforcement

A behavioral principle where the removal or avoidance of an undesirable outcome strengthens the behavior leading to its avoidance.

Punishment

The application of an aversive stimulus following a response in an effort to decrease the likelihood that the response will recur.

Positive Reinforcement

A method in behavioral psychology where the introduction of a rewarding stimulus following a desired behavior increases the likelihood of its recurrence.

Operant-Conditioning

A method of learning in which behavior strength is altered via rewards or penalties.