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.

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Definitions:

Real Assets

Physical or tangible assets that have intrinsic value due to their substance and properties, such as real estate, commodities, or natural resources.

Buying a Bond

The act of purchasing a bond, a debt security issued by entities such as governments or corporations, where the issuer owes the holders a debt and is obliged to pay interest.

Debt Relationship

The relationship between a borrower and lender, defined by the terms under which money or goods are borrowed.

Lending Money

The act of giving money to an individual or entity with the expectation that the amount will be returned, often with interest, at a later date.