An advantage of trading in dark pools is that:
A)the bid or ask prices offered can be more favorable than those available in the public stock exchanges.
B)an investor can accumulate a large number of shares of a particular stock without putting excessive upward pressure on the stock price.
C)they are convenient for high-frequency traders using computer algorithms to catch price discrepancies.
D)all of the above

Question

Quizplus · Accepted Answer

All of the above advantages are true for trading in dark pools. The anonymity and lack of transparency in dark pools can often result in more favorable bid or ask prices than those available in public stock exchanges. Dark pools also enable investors to accumulate shares without impacting the stock price as much as they would in a public exchange. Additionally, high-frequency traders using computer algorithms can take advantage of the speed and convenience of dark pools to find market inefficiencies and make profitable trades.

An Advantage of Trading in Dark Pools Is That