Program trading:
A) is the most likely reason there was a stock market crash in October 1987.
B) occurs only in over-the-counter markets.
C) refers to computer-generated orders to buy or sell many shares at the same time.
D) has been abolished by order of the ASX.

Question

Quizplus · Accepted Answer

Program trading refers to computer-generated orders to buy or sell many shares at the same time. It can occur in both stock exchanges and over-the-counter markets. While program trading was a factor in the stock market crash of October 1987, it was not the only reason for the crash. Program trading has not been abolished by the ASX.

Program Trading