CHap 3 quiz

he owns the stock and must submit payment.

A customer's order to buy 500 shares of QRS at 60 is executed and the agent reports the trade execution to the customer. One hour later, the customer notices that QRS is down 2 points and informs the agent that he no longer wants the stock and is not planning to pay for it. The agent should tell the customer that:

dealer on the New York Stock Exchange who executes orders for other brokers and who also acts as a market maker with the responsibility of keeping an orderly market in designated stocks.

An exchange specialist is a(n):

buy stop limit order

If a client places an order to buy 300 DWQ at 140 stop, but not over 144, and the order is left with a specialist, this is a:

the security trades anywhere other than on an exchange.

If a security trades in the over-the-counter (OTC) market, it means that:

commission

In an agency trade the selling customer pays a:

a broker/dealer who stands ready to buy or sell at least the standard unit of a specific stock traded in the over-the-counter market.

It is often said that the backbone of the over-the-counter market is the market-maker. A good description of a market maker would be:

Buy 100 XYZ at market; cancel buy 100 at 82.50 stop GTC.

Mr. Donaldson is short 100 XYZ at $80 and has entered a buy stop XYZ at 82.50 GTC. The current market value for XYZ is $76. A favorable report is released, and XYZ starts to rally. Mr. Donaldson wants to cover immediately. The order ticket should be written as:

a dealer who holds itself out as being ready at all times to buy or sell shares of a specified security at a quoted price.

Under the Securities Exchange Act of 1934, a market maker is:

Buy a stop

Which of the following could accelerate a rise in a bull market?

A buy stop.

Which of the following is an order to purchase at higher than the current market?

A securities exchange market is an auction market in which prices are established by auction

Which of the following statements about stock exchanges is TRUE?

Buying and selling stocks on the secondary market.

Which of the following takes place on the New York Stock Exchange?