One Problem Associated with Commission-Based Transactions Is That the Arrangement

question 8

Multiple Choice

One problem associated with commission-based transactions is that the arrangement provides

• A) greater costs to the investor.
• B) the temptation to recommend frequent changes in the investor's holdings.
• C) more commissions if the investor's portfolio appreciates in value.
• D) institutional investors a greater advantage over smaller investors.

---

Definitions:

Prokaryotes

Microorganisms characterized by the absence of a nucleus and other membrane-bound organelles, broadly classified into bacteria and archaea.

Eukaryotes

Organisms with cells that contain a nucleus enclosed within membranes.

DNA Pol III

An enzyme involved in DNA replication, responsible for synthesizing new strands of DNA in bacteria.

Polynucleotide Chain

A biopolymer composed of 13 or more nucleotide monomers covalently bonded in a sequence, forming part of the structure of DNA and RNA.