An ECN is best described as:
A)an electronic network which transmits orders directly to the floor of the NYSE.
B)the network used in the primary market for selling newly issued shares.
C)the international trading network of the NYSE.
D)a website that allows individual investors to trade directly with one another.
E)a computerized network used by independent brokers.

Question

Quizplus · Accepted Answer

An ECN (Electronic Communications Network) is a website that facilitates direct trading between individual investors without the need for a broker. ECNs operate by matching buy and sell orders entered by subscribers and providing market information in real-time. They are not associated with any particular exchange such as the NYSE, nor are they limited to selling newly issued shares in the primary market. While independent brokers may use ECNs, they are not exclusive to them.

An ECN Is Best Described As