Dark Pools

question 6

Multiple Choice

Dark pools:

• A) are private stock markets used by institutional investors.
• B) are stocks issued by firms that have disclosed very limited financial information.
• C) are stock option contracts that cover positions in stocks.
• D) are contracts used to bet against the default of a debt instrument.

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Definitions:

Annual Installment

A fixed amount of money paid back to a lender once a year, typically used in the repayment of long-term loans.

Face Value

The nominal or dollar value stated on a financial instrument, such as a bond or stock certificate.

Bond Issue

The process of offering bonds for sale to investors as a way of borrowing money for long-term capital needs.

Interest Payable

The amount of interest expense that has been incurred but not yet paid by the company.