alleryStart learning →How did the NYSE answer the NASDAQ's head start in electronic trading?
AIt closed its trading floor entirely
BIt bought a 25 percent stake in the LSE
CIt merged with Archipelago, a major ECN
DIt withdrew from all foreign listings
Answer & Solution
Correct answer: C. It merged with Archipelago, a major ECN
1. The NYSE fell behind its more nimble rival, which already had an electronic platform.
2. It answered by going public and merging with Archipelago, a major electronic communications network, to enter the electronic marketplace.
3. The NASDAQ responded immediately by acquiring another such network, Instinet's INET.
4. The NYSE then signed an agreement to merge with Euronext, creating the first exchange to span the Atlantic.
5. It was the NASDAQ, not the NYSE, that increased its ownership of shares in the London Stock Exchange to 25 percent.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 16 "Understanding Financial Management and Securities Markets", section 16.8 Trends in Financial Management and Securities Markets_
Keep practising Financial Management and Securities Markets
Browse all Financial Management and Securities Markets questions for US CMA Part 2, or explore more Financial Management topics.
Related questions
Since the Sarbanes-Oxley Act, what do CFOs consider their top priority?What does Regulation FD require of public companies?The Securities Investor Protection Corporation insures each customer's account up to what What is insider trading?What does the Securities Act of 1933 require of a new securities issue?Electronic communications networks let traders deal directly in what is known as which marThe NASDAQ lists more companies than the NYSE. On which measure does the NYSE still lead?What was the NASDAQ when it was founded in 1971?