Program Trading

question 93

Multiple Choice

Program trading:

• A) is the most likely reason there was a stock market crash in October 1987.
• B) occurs only in over-the-counter markets.
• C) refers to computer-generated orders to buy or sell many shares at the same time.
• D) has been abolished by order of the ASX.

---

Definitions:

Loss

A financial situation where expenses exceed revenues, or when an investment's value decreases compared to its purchase price.

Price

The monetary value assigned to a product or service, determined by various factors including supply, demand, and production costs.

Diagram

A simplified drawing or plan that represents facts, figures, or ideas through symbols, shapes, or lines.

Equilibrium Price

The cost at which the amount of a product sought by consumers matches the amount available from suppliers, leading to equilibrium in the market.