Which One of the Following Occurred Following the Crash of 1987

question 18

Multiple Choice

Which one of the following occurred following the Crash of 1987?

• A)Program trading was barred.
• B)All market orders were changed to electronic orders.
• C)Trading is now halted for the day any time the market declines by 10 percent or more.
• D)Trading now stops for one hour any time the market declines by 10 percent.
• E)Congress decided not to pass any antitakeover legislation.

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Definitions:

Financial Statements

Reports that summarize the financial performance, position, and cash flows of a business over a specific period.

Fundamental Analysis

A method of evaluating a security that involves attempting to measure its intrinsic value by examining related economic, financial, and other qualitative and quantitative factors.

Mispriced Securities

are financial instruments whose market price significantly deviates from their intrinsic value, due to information asymmetry, market inefficiencies, or other factors.

Stewards

Individuals or entities responsible for managing and protecting the resources or assets of others, often in the context of financial management or governance.