For years, the images of brokers shouting and scrambling on the floor of the New York Stock Exchange have offered an exciting perspective on the intensity of trading stocks under volatile conditions
Which of the following threatens to end the practice of floor trading on the NYSE?
A) expansion of the over-the-counter market
B) Securities and Exchange Commission regulations
C) growth of electronic communications networks
D) the ramifications of the 2008 financial crisis
E) collapse of the secondary market for securities
Answer: C
Explanation: C) Electronic communications networks (ECNs) directly link sellers and buyers, offering faster and less expensive trading. More trades are being transacted on ECNs, perhaps one day making the "middleman" model of brokers on a trading floor obsolete.
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