Most sense to avoid receiving unfavorable execution price

Assignment Help Operation Management

Reference no: EM132161348

Do you know that approximately 70% of all trading activity in modern markets consists of computers trading against other computers? At the bottom of page 65 in your text, you will see the "NEW TRADING STRATEGIES" section of your chapter. The rise of algorithmic and high-frequency trading have raised all sorts of questions related to speed, fairness, and stability. For example, the Flash Crash, occurring on May 6, 2010, saw the market (i.e. DJIA) fall 1000 points only to partly recover minutes later. While this was an extremely volatile event, markets now routinely see mini crashes in individual securities (where the stock drops dramatically only to recover seconds later), all due to the presence of high-frequency traders. Overall, based on what you have read thus far, do you think high-frequency traders are beneficial to markets, or do they do more harm than good? Do you worry about placing an order to buy a stock in the midst of a mini crash? What type of order makes the most sense to avoid receiving an unfavorable execution price should you buy in the midst of a mini flash crash?

Reference no: EM132161348

Questions Cloud

Standard deviation of the sampling distribution : In a given population, which value will be greater, population standard deviation or the standard deviation of the sampling distribution? Why?

Impacts of procurement fraud : What are the short terms and long term impacts of procurement fraud?

Powerpoint inclusive of the reimbursement methodologies : Develop a training session with examples utilizing PowerPoint inclusive of the reimbursement methodologies mentioned above.

Describe the core marketing functions within organization : 1. Describe the core marketing functions within an organization. 2. Discuss the goals and expected outcomes of this organizational function.

Most sense to avoid receiving unfavorable execution price : What type of order makes the most sense to avoid receiving an unfavorable execution price should you buy in the midst of a mini flash crash?

Difference between line management and staff management : What is the difference between line management and staff management (and if possible the definitions of them)?

Describe at least five of the major challenges : Describe at least five of the major challenges facing the global managerial worker

Dissatisfaction sours their commitment to organization : People often go through as dissatisfaction sours their commitment to the organization or their job.

Difference between a business case and a business plan : What is the main difference between a business case and a business plan and how are each of them used independently?

User Account

All Pages