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• B) dealers trading with their customers at an outdated price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:

Binocular Cue

Visual information taken in by two eyes that enable a sense of depth perception, or 3D vision.

Depth Perception

The ability to see objects in three dimensions and to judge the distance of objects.

Retinal Disparity

A key concept in binocular vision, referring to the slight difference in the images projected on the retina of each eye, which is crucial for depth perception.

Clyde Tombaugh

An American astronomer best known for discovering Pluto in 1930.