The Trading Activity Involving Purchases of Large Blocks of Securities

question 20

Multiple Choice

The trading activity involving purchases of large blocks of securities on the expectation of a favorable price move over the next several weeks or months is called

• A)program trading.
• B)pure arbitrage.
• C)day trading.
• D)position trading.
• E)hedging.

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Definitions:

Voluntary Nonexchange Transactions

Transactions where an entity voluntarily gives or receives value without directly receiving or giving equal value in exchange.

Fund

A pool of money set aside for a specific purpose or managed to generate financial returns.

Property Taxes

Taxes charged by local governments on real estate and sometimes personal property, based on the assessed value of the property.

Special Assessment

A charge that local governments impose on property owners to fund specific projects, such as infrastructure improvements, which directly benefit the property owners.