SIE CH.4 sec 1 trading markets

A securities dealer is quoting ABCD stock at 12.00 - 13.00 (10 x 15). This means that the dealer is willing to: A. buy 1,000 shares at $12 and sell 1,500 shares at $13 B. sell 1,000 shares at $12 and buy 1,500 shares at $13 C. buy 1,200 shares at $10 and sell 1,300 shares at $15 D. sell 1,200 shares at $10 and buy 1,300 shares at $15

A

A securities firm does a trade for a customer and charges a commission. In what capacity did the firm act? A. Agent B. Dealer C. Principal D. Market Maker

A

An order for a New York Stock Exchange listed issue is routed by the member firm to an Electronic Communications Network (ECN) rather than to the exchange floor. This practice is permitted: A. if the price offered by the ECN is better B. only if the customer consents C. only if an attempt to fill the order on the NYSE fails D. only if the NYSE is closed

A

Initial Public Offerings (IPOs) are sold for the first time in the: A. primary market B. first market C. third market D. fourth market

A

Quotes from all market centers in NYSE listed securities are found on (the): A. CQS (Consolidated Quotations Service) B. UQDF (UTP Quote Data Feed) C. ADF (Alternate Display Facility) D. Pink Sheets

A

Stocks that are listed on the New York Stock Exchange can also be typically listed and traded on all of the following exchanges EXCEPT: A. American Stock Exchange B. Chicago (Midwest) Stock Exchange C. Boston Exchange D. Pacific Exchange

A

Trading on regional stock exchanges is modeled after trading procedures used by the: A. NYSE B. NASDAQ C. AMEX (NYSE American) D. CBOE

A

Traditionally, First Market trading occurred in a(n): A. auction market B. negotiated market C. unregulated market D. primary market

A

Which of the following are First Markets? A. NYSE and NASDAQ B. Pink OTC Market C. NYSE only D. OTCBB

A

A securities firm does a trade for a customer and charges a mark-up. In what capacity did the firm act? A. Agent B. Dealer C. Broker D. Middleman

B

The Third Market is a(n): A. auction market B. negotiated market C. unregulated market D. primary market

B

Which of the following describes a transaction that occurred in the "Fourth Market"? A. The President of a listed company selling a large block of that company's stock B. A mutual fund buying shares of stock directly from an insurance company C. A dealer selling shares of stock through a broker's broker D. A company listing its shares directly after completing its Initial Public Offering

B

Which statement is TRUE? A. Trades of NYSE listed issues, regardless of the market venue where the trade took place, are reported via the Network C Tape B. Trades of NYSE listed issues, regardless of the market venue where the trade took place, are reported via the Network A Tape C. Trades of NYSE American (AMEX) listed issues, regardless of the market venue where the trade took place, are reported via the Network A Tape D. Trades of NASDAQ listed issues, regardless of the market venue where the trade took place, are reported via the Network B Tape

B

All of the following statements are true if a customer places an order for an NYSE-listed issue EXCEPT the order: A. must be directed by the member firm to the NYSE trading floor for execution if the customer so requests B. can be directed by the member firm to any trading venue posting the best price if the customer does not direct the order to a specific market C. can be matched internally by the member firm and is not required to be sent to a public trading venue D. can be directed by the member firm to a trading venue posting the best price that "pays for order flow" as long as this is disclosed to the customer

C

An inefficient trading market is one with: A. high volume B. centralized trading floor C. large bid/ask spreads D. publicly disseminated trade reporting

C

ECNs trade securities: A. during regular NYSE market hours B. between 9:00 AM and 9:00 PM C. 24 hours a day D. only when the primary trading markets are closed

C

Stock options trade on the: A. NASDAQ B. CME C. CBOE D. CBOT

C

The "after hours" market is characterized by: A. Narrow Spreads and Low Trading Volume B. Narrow Spreads and High Trading Volume C. Wide Spreads and Low Trading Volume D. Wide Spreads and High Trading Volume

C

The NYSE Specialist (DMM) and Floor Trader system is the model for trading used by which of the following markets? A. NASDAQ B. OTCBB C. PHLX D. BATS

C

The individuals who make a secondary market in corporate bonds include all of the following EXCEPT: A. Market Makers B. Traders C. Underwriters D. Dealers

C

The trading of listed securities over-the-counter occurs in the: A. First Market B. Second Market C. Third Market D. Primary Market

C

Which of the following securities is NOT traded in the secondary market? A. Preferred Stocks B. American Depositary Receipts C. Mutual Funds D. Municipal Bonds

C

Retail member firms that route orders to market makers in return for compensation earn: A. mark-ups B. mark-downs C. commissions D. payments for order flow

D

The Primary Market is the: A. trading of exchange listed securities on that exchange floor B. trading of securities that are not exchange listed in the over-the-counter market C. trading of exchange listed securities in the over-the-counter market D. sale of new issues for the first time

D

Typically, a dual listed stock is one that trades in: A. the First and Third Markets B. the Second and Third Markets C. the Third and Fourth Markets D. multiple First Markets

D

Which of the following is NOT part of the secondary market? A. First Market B. Third Market C. Fourth Market D. Fifth Market

D

Which of the following is part of the Second Market? A. NYSE B. NASDAQ C. AMEX (NYSE American) D. OTCBB

D