Dark pools
A)are computerized platforms used by institutional investors that operate like private stock markets.
B)are stocks issued by firms that have disclosed very limited financial information.
C)are stock option contracts that cover positions in stocks.
D)are contracts used to bet against the default of a debt instrument.

Question

Quizplus · Accepted Answer

Dark pools are indeed computerized platforms used by institutional investors to trade stocks privately, without the transparency of public stock exchanges. This allows them to make large trades without impacting the market before their trade is executed.

Dark Pools