Which practice is especially common in international funds as traders can exploit differences in time zones?

Question

Quizplus · Accepted Answer

Market timing involves buying and selling securities in anticipation of market movements or based on market trends. As traders in international funds can exploit differences in time zones to gain an advantage, market timing may be a common practice in such funds. Directed brokerage involves steering trades to a particular broker or dealer in exchange for some benefit, insider trading involves using non-public information to make trades, late trading involves placing trades after the market has closed but obtaining that day's price, and spinning involves allocating shares in an initial public offering (IPO) to executives in exchange for their company's investment banking business. None of these practices directly relate to exploiting time zone differences in international trading.

Which Practice Is Especially Common in International Funds as Traders