You will hear traders say that technology reduces volatility but the flash crash proved that a bad piece of programming can cause a dramatic drop in stock prices for no reason at all. I don't see how answer A applies - restricting commissions wouldn't stop stock prices from rising or falling fast. Answer D - don't understand - letting people buy and sell stocks in amounts of $10 or when the stock price is below $10?
c
Has to be C
Im doing these financial tests I need to graduate and I need some help. These are the answer choices.
A-Restricting fees and commissions to less than 0.5% of stock value.
B-Allowing people to buy and sell stock shares as fast as technology allows.
C-Forbidding trading stock if its value changes too fast.
D-Allowing trades for amounts as low at $10