Wall Street Firms Said to Face U.S. Block Trading Probe

Wall Street Firms Said to Face U.S. Block Trading Probe

Assessment

Interactive Video

Business

University

Hard

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The video discusses the scrutiny faced by investment banks over block trades, a method used by hedge funds and private equity to execute large trades without affecting market prices. An investigation initiated in 2018 by the SEC and DOJ is examining potential misuse of confidential data. While Morgan Stanley and Goldman Sachs are mentioned, no charges have been filed yet. The probe aims to address concerns about price movements and data misuse in these trades.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary role of investment banks in block trading?

To ensure trades are executed at the lowest price

To manage trades off market hours to prevent price movement

To execute trades during market hours

To provide loans for block trades

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

When did the investigation into block trades initially begin?

2015

2018

2020

2022

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which major financial institutions are mentioned as being questioned in the investigation?

Deutsche Bank and HSBC

Bank of America and Wells Fargo

Morgan Stanley and Goldman Sachs

JPMorgan Chase and Citibank

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the opening of a probe by the DOJ and SEC indicate?

That the investigation has concluded

That an investigation is underway but no charges are confirmed

That there is confirmed wrongdoing

That charges have been filed

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What concern has been raised regarding block trades?

The involvement of too many financial institutions

The lack of transparency in trade execution

The high cost of executing trades

The potential misuse of confidential data