The trade-through rule states that

Question

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The trade-through rule requires that a stock trade be executed at the best price available in all of the stock markets. This means that if a better price is available in another market, the trade must be routed to that market to ensure the best price for the investor. This rule helps ensure fair and efficient markets and prevent trade fragmentation. The other options are incorrect; new securities are not traded through the secondary market but are issued through an IPO, securities in the secondary market do not involve the issuing corporation, and the approval of a related firm is not required for trading derivatives.

The Trade-Through Rule States That