Blatantly Incorrect Statement on EK 1001 VR Test 10 #3 (Spoiler)

[plukfelder2017]

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Folks,

If you are doing EK VR 1001, there is a blatantly incorrect answer on #3. EK's answer is that "institutional investors attempting to acquire voting control of a corporation is an infrequent occurrence." Their reasoning is that "of course, it (optimark), could still earn commissions even if it were used only by institutions trading outside the traditional markets, but there is not enough volume in those markets to make optimark worthwhile." However, they then proceed to state that Optimark which is specifically utilized in the case of these larger block purchases can undermine the entire volume of the NYSE.

-I don't have access to the errata so maybe this has been broached on the EK forum.

Please note: I do have prior financial services experience and feel like there are some contradictions in the passage.

 

[yeasureyoubetcha]

Folks,

If you are doing EK VR 1001, there is a blatantly incorrect answer on #3. EK's answer is that "institutional investors attempting to acquire voting control of a corporation is an infrequent occurrence." Their reasoning is that "of course, it (optimark), could still earn commissions even if it were used only by institutions trading outside the traditional markets, but there is not enough volume in those markets to make optimark worthwhile." However, they then proceed to state that Optimark which is specifically utilized in the case of these larger block purchases can undermine the entire volume of the NYSE.

-I don't have access to the errata so maybe this has been broached on the EK forum.

Please note: I do have prior financial services experience and feel like there are some contradictions in the passage.

I do not have access to EK passages, but for the VR section you are not supposed to bring in any outside knowledge. For each passage, the only truths are what is stated in the passage. If a passage states that proteins are the material of heredity, then you'd better believe it to be true for that passage, even if in the real world its 100% false.

 

[exacto]

I If a passage states that proteins are the material of heredity, then you'd better believe it to be true for that passage, even if in the real world its 100% false.

Haha this is to true

 

[plukfelder2017]

I do not have access to EK passages, but for the VR section you are not supposed to bring in any outside knowledge. For each passage, the only truths are what is in stated in the passage. If a passage states that proteins are the material of heredity, then you'd better believe it to be true for that passage, even if in the real world its 100% false.

Thanks for your insight and I will definitely keep this in mind.

Unfortunately, if you assess the statement within the bounds of the passage it is still incorrect.

 

[Bleu]

Folks,

If you are doing EK VR 1001, there is a blatantly incorrect answer on #3. EK's answer is that "institutional investors attempting to acquire voting control of a corporation is an infrequent occurrence." Their reasoning is that "of course, it (optimark), could still earn commissions even if it were used only by institutions trading outside the traditional markets, but there is not enough volume in those markets to make optimark worthwhile." However, they then proceed to state that Optimark which is specifically utilized in the case of these larger block purchases can undermine the entire volume of the NYSE.

-I don't have access to the errata so maybe this has been broached on the EK forum.

Please note: I do have prior financial services experience and feel like there are some contradictions in the passage.

Check the errors section on EK forum. You do have access, it's free!