In program trading, computers decide when to buy or sell stocks on behalf of large, institutional investors.

Question:

In program trading, computers decide when to buy or sell stocks on behalf of large, institutional investors. The computers then carry out those transactions with electronic speed. Critics claim that this practice is a major reason why stock prices rose and fell sharply in the 1980s. Is this idea plausible? Why or why not?
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Economics Principles and Policy

ISBN: 978-0538453653

12th edition

Authors: William J. Baumol, Alan S. Blinder

Question Posted: