When Manmeet's Father Passed Away,the Will Stated That the Manmeet

question 164

Multiple Choice

When Manmeet's father passed away,the will stated that the Manmeet and his brother should decide how to split the estate between them.After weeks of fighting over how to divide the inheritance,Manmeet tells his brother,"I would rather both of us get nothing than for you to get more than is right!" This somewhat irrational position is likely the result of

• A)the fairness bias.
• B)the hindsight bias.
• C)cognitive dissonance.
• D)avoiding loss.

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Definitions:

Dealers

Individuals or firms in the financial markets that act as principals in trading, buying, and selling securities for their own account.

Third Market

Trading venue for exchange-listed stocks that occurs off the official exchange, often involving large institutional investors through over-the-counter (OTC) transactions.

Fourth Market

Trading of securities directly between investors, bypassing traditional brokerage and exchange platforms.

OTC Markets

Over-the-counter markets refer to decentralized markets where trading occurs directly between two parties without the supervision of an exchange.