7. the trading activity involving purchases of large blocks of securities on the expectation of a favorable price move over the next several weeks or months is called a. program trading b. pure arbitrage c. day trading d. position trading e. hedging



Answer :

Edz0zz

The trading activity that involves purchases of large blocks of securities on the expectation of a favorable price move over the next several weeks or months is called program trading.

What exactly is program trading?

Program trading refers to the simultaneous purchase and sale of many different stocks, or of stocks and related futures contracts, with the use of a computer program to exploit price differences in different markets. It is a type of trading in securities that usually consists of baskets of fifteen stocks or more that are executed by a computer program simultaneously based on predetermined conditions.

There are several reasons for program trading, including principal, agency, and basis trading.

Learn more about program trading here: https://brainly.com/question/14856284

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