An ECN Is Best Described As

question 1

Multiple Choice

An ECN is best described as:

• A)an electronic network which transmits orders directly to the floor of the NYSE.
• B)the network used in the primary market for selling newly issued shares.
• C)the international trading network of the NYSE.
• D)a website that allows individual investors to trade directly with one another.
• E)a computerized network used by independent brokers.

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Definitions:

Service Level

A metric used to measure the quality of service provided, often reflecting the percentage of customer requests or orders fulfilled correctly and on time.

Quantity Discounts

Price reductions given to customers for purchasing large volumes of a product, aimed at encouraging bulk buying and increasing sales volume.

Cost-Minimizing Solution

A cost-minimizing solution is an economic strategy or method that aims to achieve the lowest possible cost while fulfilling certain conditions or requirements.

Annual Holding Costs

The total cost associated with storing and maintaining inventory over a year, including warehousing, insurance, and depreciation.