Which One of the Following Describes an ECN

question 103

Multiple Choice

Which one of the following describes an ECN?

• A)Web site used by investors to trade directly with other investors
• B)Web site limited to use by professional brokers and dealers
• C)computerized trading floor
• D)communications network used by specialists
• E)cellular trading network

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Definitions:

Short-Term Investments

Financial assets that are expected to be converted into cash or sold within a year.

Seasonal Fluctuations

Variations in business activity, sales, or performance that occur regularly at certain times of the year due to the season.

Debt Securities

Financial tools that signify an investor lending money to a borrower, commonly consisting of bonds, notes, and bills.

Speculative Reasons

Motivations based on speculation where actions are taken with the expectation of future financial gains or losses.