An Electronic Communications Network (ECN) Is an Automated, Computerized Securities

question 70

True/False

An electronic communications network (ECN) is an automated, computerized securities trading system that automatically matches buyers and sellers, allowing trades to be executed very quickly and at times when markets are normally closed.

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Definitions:

Excess Returns

Returns on an investment that exceed a benchmark or average return, indicating higher-than-expected performance.

Abnormal Returns

Returns on a security or portfolio that exceed what is predicted by market models, such as the CAPM, indicating outperformance.

Hyman Minsky

An American economist known for his theories on financial instability and the inherent tendency of financial markets to move towards crisis.

Asset Bubbles

A situation where the price of an asset dramatically exceeds its intrinsic value, often due to speculative buying.