Which of the Following Statements Is False Regarding Electronic Communications

question 52

Multiple Choice

Which of the following statements is false regarding Electronic Communications Networks (ECNs) ?

• A) Archipelago and Instinet are two examples of ECNs.
• B) Competition from ECNs has forced NASDAQ to cut its fees.
• C) Traders benefit from lower trading costs and faster service.
• D) ECNs allow institutional investors, but not individuals, to trade after hours.

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Definitions:

Social Incentives

Motivations or rewards based on social factors, such as recognition or status within a community, that influence behavior.

Contractual

Relating to, involving, or established by a formal agreement, especially one legally enforceable between two or more parties.

Nonprofit Organization

An entity whose primary objective is to support an issue or matter of private interest or public concern for non-commercial purposes, without the intent of making a profit.

Outside Legal Opinion

An assessment or advice given by an independent law firm or legal expert that is not affiliated with the organization seeking the opinion.