Unit 1 Missed Questions

Trading hours on the New York Stock Exchange are

9:30 am to 4:00 pm Eastern Time.

Which of the following statements would describe the Fourth Market?

A market for institutional investors in which large blocks of stock, both listed and unlisted, trade in transactions unassisted by broker-dealers

An order is entered by a customer to sell at 30 stop limit. Once the order is entered, the stock trades in the following sequence: 32, 29, 31, and 33. The order would be executed and the investor would receive a price of

A) 31.

The Big Shoe Sneaker Company is a small manufacturer of athletic shoes. It is selling $100 million of its stock. This will be its third public offering of the company stock. It will use the money to enhance both marketing and production with a plan to grow the business and obtain a Nasdaq listing in two or three years. After the initial sale of the new shares, buyers of the stock in the over-the-counter market should expect to receive the final prospectus for how many days?

C) 40 days

An investor enters a sell stop limit order at 60. Following the order entry, trades occur at 62, 60, 59, 61, and 63. The investor will most likely receive

C) 61.

Correspondent firms would be likely to have relationships with which of the following types of broker-dealers?

Self-clearing

A customer enters an order to buy 325 shares of Bryce Bridges, Inc., at 17. Which of the following regarding these order instructions is true?

The order can be executed at 17 or lower.

BigBox Stores, Inc., common stock is a New York Stock Exchange-listed security. If an over-the-counter dealer makes a market in the stock, this activity is taking place in which market center?

Third market

A customer placed an order to purchase 300 shares of DEF Corp. preferred stock. The broker-dealer sourced the shares from another broker-dealer that makes a market in the stock. The customer's firm acted as

a broker.

Modulux, Inc., a NYSE listed manufacturing company, was founded by Clarence Mod. Clarence is now 82 years old and is looking to divest his significant interest in Modulux to capitalize the Mod Family Foundation, a charity. He has enlisted the help of Seacoast Securities, a FINRA member broker-dealer based in Seattle, to run the sale. Seacoast Securities is acting as

an investment banker.

An order that when triggered becomes a market order is called a

stop order.

Electronic communication networks (ECNs) are part of

the fourth market.

A market maker

trades in a proprietary account to facilitate trading of a security and provide liquidity.

All of the following are benefits of using a prime broker except

B) research.

Trading in the over-the-counter market occurs between whom?

Market makers

Which of the following could not be considered an institutional investor?

An accredited investor

Which of the following choices would best describe a follow-on offering?

An issue of shares by a public company that is already listed on an exchange

Which of these may be found in the final prospectus that is not in the preliminary prospectus? I. Next year's sales II. Public offer price III. Release date IV. Planned use of the proceeds

D) II and III

Which of the following statements regarding a Rule 415 shelf registration is false?

C) It requires a prospectus to be filed only once.

Your customer notes that the amount of commission they paid your broker-dealer firm for their purchase of 100 shares of DEF, Inc., common stock is about 1% of the purchase price. On this trade your firm most likely acted in what capacity?

C) On an agency basis

A corporation needs to build a new manufacturing facility costing several hundred million dollars. In which of the following markets could this new capital be raised?

Capital market

Seacoast Securities, a member firm, filled a customer's sell order for BigTech Computers common stock and did not charge a commission. The firm most likely acted in what capacity?

Dealer

A broker-dealer has a line of business restricted solely to the purchase and sale of securities with trade executions being handled by another member firm. Which of the following would best describe this type of firm?

Introducing/fully disclosed

Which of the following is true regarding the primary market?

Issuer transactions occur in the primary market.