Which One of the Following Statements Related to the NYSE

question 98

Multiple Choice

Which one of the following statements related to the NYSE Hybrid market is correct?

• A)Floor brokers operate both electronically and in person.
• B)The Hybrid system replaces the market specialists.
• C)The automated system works better than the specialist for stocks with minimal liquidity.
• D)The automated system will only replace the specialist in times of market duress.
• E)Investors can automatically trade an unlimited number of shares.

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Definitions:

Fixed Costs

Costs that do not change with the level of output or production volume, such as rent, salaries, and insurance premiums.

Margin of Safety

The difference between actual sales and the break-even point, indicating how much sales can drop before the company incurs a loss.

Break-Even Point

The level of sales at which total revenues equal total costs, and the business makes no profit but also no loss.

Sensitivity Analysis

A financial modeling technique that determines how different values of an independent variable affect a particular dependent variable under a given set of assumptions.