This assessment will count towards your individual participation grade
Overview of Presenting in a Digital World
Evolution of Market Technology & Evaluating Market Quality
After completing the weekly section, you will be able to:
Please read the following articles.
Lewis, D. (2016, November 15). The Physical Stock Ticker Is a Relic, But Its Influence Reverberates Loudly Today. Retrieved July 10, 2020 from https://www.smithsonianmag.com/smart-news/the-physical-stock-ticker-is-a-relic-but-its-influence-reverberates-loudly-today-180961092/
Elliotwavemarkets.com. (n.d.) History of Financial Markets [Digital image]. Retrieved June 23, 2020, from https://ewminteractive.com/wp-content/uploads/2014/08/History-of-Financial-markets.png
Spicer, D. (2015, October 06). Tools of The Trade: An Historical Look at Technology and Commerce. Computer History Museum. Retrieved July 10, 2020 from https://computerhistory.org/blog/tools-of-the-trade-an-historical-look-at-technology-and-commerce/
Pfeffer, I. (n.d.). Electronic Trading. Britannica Book of the Year. Retrieved July 10, 2020 from https://www.britannica.com/topic/Electronic-Trading-1517831
Q1: The earliest electrical communications medium specifically dedicated to the financial sector was the:
a) Transatlantic Telegraph Cable
b) Stock ticker (ticker tape)
c) Stock Exchange Automated Quotation System
d) Intermarket Trading System
Q2: True or False? An Intermarket Trading System is a computerized system that automatically matches buy and sell orders for securities in the market.
a) True
b) False
Q3: True or False? The desire for faster access to market information has been a primary driver for many developments in trading technology.
a) True
b) False
Q: In modern stock exchanges, why has market speed become so important? What factors can give a trader an edge over the competition? Highlight a specific market technology and why it’s important.
Please read the following articles.
Harper, D. (2020, April 10). Understanding Liquidity Risk. Retrieved June 23, 2020, from https://www.investopedia.com/articles/trading/11/understanding-liquidity-risk.asp
Investopedia Staff. (2020, February 05). How to Calculate the Bid-Ask Spread. Retrieved June 23, 2020, from https://www.investopedia.com/articles/investing/082213/how-calculate-bidask-spread.asp
Cboe Exchange, Inc. (n.d.). Cboe Exchange: Execution Quality Definitions. Retrieved June 23, 2020, from https://certification.batstrading.com/market_data/execution_quality/definitions/
Twin, A. (2020, May 29). Depth of Market - DOM Shows Supply and Demand Levels for a Security. Retrieved June 23, 2020, from https://www.investopedia.com/terms/d/depth-of-market.asp
Brandao-Marques, L. & Gelos, G. (n.d.). Resilience of market liquidity. Retrieved June 23, 2020, from https://voxeu.org/article/resilience-market-liquidity
Q1: Which measure of liquidity measures the actual cost of a trade?
a) Bid-ask spread
b) Effective spread
c) Market depth
d) Resilience
Q2: If you want to trade a large order all at one time, which variable is going to be the most important to your decision?
a) Bid-ask spread
b) Effective spread
c) Market depth
d) Resilience
Please read the following articles.
IG. (n.d.). Random walk theory definition. Retrieved June 23, 2020, from https://www.ig.com/en/glossary-trading-terms/random-walk-theory-definition
Phung, A. (2020, April 09). How Can Random Walk Theory Be Applied to Investing? Retrieved June 23, 2020, from https://www.investopedia.com/ask/answers/08/random-walk-theory.asp
Corporate Finance Institute. (2020, April 22). Random Walk Theory - Definition, History, Implications of the Theory. Retrieved June 23, 2020, from https://corporatefinanceinstitute.com/resources/knowledge/trading-investing/what-is-the-random-walk-theory/