One Disadvantage of Program Trading Is That

question 59

Multiple Choice

One disadvantage of program trading is that

• A)during a market crash, computers tend to automatically execute huge numbers of buy orders as prices fall. This accelerates and strengthens the market decline.
• B)investors program their computers to buy or sell particular stocks when the stock hits a particular price.
• C)during a market crash, computers tend to automatically execute huge numbers of sell orders as prices rise. This accelerates and strengthens the market decline.
• D)during a market crash, computers tend to automatically execute huge numbers of sell orders as prices fall. This accelerates and deepens the market decline.

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Definitions:

Estrogen

A group of steroid hormones that promote the development and maintenance of female characteristics of the body.

Progesterone

A steroid hormone released by the corpus luteum that stimulates the uterus to prepare for pregnancy.

Testosterone

A steroid hormone produced primarily in the testes of males and the ovaries of females, playing a key role in the development of male reproductive tissues and secondary sexual characteristics.

Innate

A characteristic, ability, or quality that is present from birth, not acquired or learned.