Which One of the Following Statements Is NOT True About

question 82

Multiple Choice

Which one of the following statements is NOT true about brokered markets?

• A) Brokers bring buyers and sellers together to earn a fee, called a commission.
• B) Brokers' extensive contacts provide them with a pool of price information that individual investors could not economically duplicate themselves.
• C) Investors have an incentive to hire a broker because they charge a commission that is less than the cost of direct search.
• D) Brokers can guarantee an order because they have an inventory of securities.

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Definitions:

Incidental Information

Information that is not essential or central but may be encountered or learned by chance.

Sensory Memory

The shortest-term element of memory, responsible for holding sensory information for a few seconds or less.

Photographic Memory

A rare ability to recall images, sounds, or objects in great detail after only a few instances of exposure, without using mnemonics.

Classical Conditioning

A type of learning in which we link two or more stimuli; as a result, to illustrate with Pavlov’s classic experiment, the first stimulus (a tone) comes to elicit behavior (drooling) in anticipation of the second stimulus (food).