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Posted: August 12th, 2022
Spr22 C2 (10 marks in total)
1. In the US, online brokers such as Robinhood provide free share trading to their retail customers by engaging in “payment for order flow”, meaning that market makers pay the brokers for the trade orders. What are the advantages and disadvantages of this for the retail customers? Are there any issues if the market maker, not the customer, pays the broker?
(5 marks; 250 word limit)
Type answer here
2. Superannuation funds in Australia manage over $3 trillion in assets on behalf of their members. Should some of this capital be deployed to tackle climate change and social issues such as housing affordability? Discuss with consideration of the role of superannuation.
(5 marks; 250 word limit)
Type answer here
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