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Program Trading

Program Trading


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About the Book

High Quality Content by WIKIPEDIA articles! Program trading is a generic term used to describe a type of trading in securities, usually consisting of baskets of fifteen stocks or more. It is loosely defined as an electronic transaction involving 15 or more stocks with a combined value of at least $1 million. Three factors help to explain the explosion in program trading. First, technological advances spawned the growth of electronic communication networks. These electronic exchanges, like Instinet and Archipelago, allow thousands of buy and sell orders to be matched very rapidly, without human intervention. Second, the Securities and Exchange Commission mandated in 2001 that the major stock exchanges price stocks in dollars and cents instead of fractions. A stock previously priced at 7 1/8 is now listed at $7.13. Pricing stocks in penny increments instead of 1/16 increments results in 100 price points within a dollar instead of the previous eight price points.


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Product Details
  • ISBN-13: 9786134549707
  • Publisher: Betascript Publishing
  • Publisher Imprint: Betascript Publishing
  • Height: 152 mm
  • Weight: 181 gr
  • ISBN-10: 6134549703
  • Publisher Date: 05 Dec 2010
  • Binding: Paperback
  • Spine Width: 7 mm
  • Width: 229 mm


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