What Was the Result of High-Frequency Traders' Leaving the Market

question 26

Multiple Choice

What was the result of high-frequency traders' leaving the market during the flash crash of 2010?

• A) Market liquidity decreased.
• B) Market liquidity increased.
• C) Market volatility decreased.
• D) Trading frequency increased.

Describe the purpose and components of a bond indenture.

Understand the advantages of financing through bonds instead of stock.

Grasp the concepts of present value and its application to bond valuation and interest calculations.

Understand the financial impact of issuing bonds at face value, at a discount, or at a premium.

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Definitions:

Debt Financing

Raising capital through borrowing, typically via loans or by issuing bonds, which must be repaid with interest.

Strategic Issues

Fundamental challenges or decisions that are critical to an organization's long-term success and competitive position.

Annual Plans

Detailed, year-long strategies and financial budgets that organizations create to guide operations, achieve strategic objectives, and meet financial targets.

Small Business

A privately owned corporation, partnership, or sole proprietorship that has fewer employees and lower annual revenue than a corporate or multinational company.