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A 1994 Study Concluded Dealers Were Colluding to Maintain Wide

question 72

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A 1994 study concluded dealers were colluding to maintain wide bid/ask spreads by concentrating market quotes in quarters instead of eighths. This study eventually led to new order handling rules that required quotes to be available to the public through


Definitions:

Effective

The degree to which something is successful in producing a desired result; efficiency.

Open System

A concept where an organization is viewed as an entity that interacts with its external environment, exchanging resources and information.

Resource Inputs

The resources (such as labor, capital, and materials) that are required for the production process or to perform services.

Product Outputs

Product outputs refer to the goods or services produced as a result of a company's manufacturing or service processes.

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