a conceptual question about equity market

Execution costs can be best minimized by utilizing: A. Principla trades in order to maintain market anonymity B. Progra trading since the availability of a willing counter party can usually be located within the firm. C. Program trading since the trade is not motivated by a single security but rather by the need to trade a basket of securities D. Internal crossing networks since3 buying and selling the sae security is coon practice for large institutional money anagers.

C

I would say Internal Crossing Network should do the trick… D?

My guess too… D

Agree with answer C

C

that’s a hard question. I am going with C because using ECN doesn’t guarantee that your order will get filled -> there still can be high slippage

Let’s go with C, I think D is just to easy to answer.

I am going with D.

leak the answer - singlesong80!! Decider, weather I should consider postponing to 09 :slight_smile:

D - isn’t the whole point of internal crossing to minimize execution costs ie. within the company, not paying outside fees?

I would go with D).

C, as there is basic NO COST… although you can get into subject of fair price, yada, yada… what does this mean? “selling the sae security is coon practice”… that’s what shows on my screen for part of the question…

sorry, i meant D in my answer one above… the problem with A, B, C is that they all have shortcomings. i would basically say common sense-wise program trading is cheaper than single stock trading. but what if you only want to buy one stock? seems like it’s apples to oranges comparison… whereas D just seems to flash bright red as the answer.

C

i still don’t understand what “coon practice” is in the final sentence of op’s entry

Okay if I don’t get the answer today I’ll be pissed :smiley:

I try C

I’ll go with C too.

It’s C. I got this question before.