Which of the Following Is Not True Regarding Electronic Communications

question 81

Multiple Choice

Which of the following is not true regarding electronic communications networks (ECNs) ?

• A) They have a visible trading floor.
• B) Trades are executed by a computer network.
• C) They have been created in many countries to match orders between buyers and sellers.
• D) They allow investors to place orders on their computers.
• E) All of the above are true.

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Definitions:

Aggregate Earnings Multiplier

A valuation metric that compares the total market value of all companies in a sector to their aggregate earnings, often used to gauge sector valuation.

Constant Growth DDM

Dividend Discount Model assuming dividends grow at a constant rate indefinitely, used to estimate the value of a company's stock.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often receiving dividends before common shareholders and having priority in case of liquidation.

Forecasting

The process of making predictions based on past and present data trends, commonly used in finance to estimate future market movements or economic conditions.