The Term "Paying for Order Flow" Refers to the Practice

question 49

Multiple Choice

The term "paying for order flow" refers to the practice of ________________.

• A) paying more than one broker to execute your order
• B) dealers trading with their customers at an outdated price
• C) paying a broker a rebate for directing the trade to a particular stock dealer rather than directing the order to the NYSE
• D) allocating shares in an IPO to preferred customers who agree to buy more shares in the aftermarket

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Definitions:

Vicarious Learning

A process of learning through observing the actions and consequences of others, without direct personal experience.

Observing Others

involves learning behaviors, attitudes, or emotions through watching the actions of others, also known as observational learning or social learning.

Classical Conditioning

The method of teaching through the repeated coupling of two stimuli; the response, initially caused by the second stimulus, is later caused by only the first stimulus.

Token Economy

A behavioral modification method that uses tokens as a form of reinforcement for exhibiting desirable behaviors, which can be exchanged for privileges or treats.