Chapter 12
If no order qualifier is given, an order is assumed to be: A day order A good-till-canceled (GTC_ order An open order A not held order
A day order
A firm that takes a position in a specific stock may be referred to by all of the following terms, EXCEPT: Dealer Principal Broker Market maker
Broker
Each of the following are exempt from the FINRA 5% Markup Policy, EXCEPT: Mutual funds Listed stocks New issues Municipal bonds
Listed stocks
A client has requested for her firm to sell 2,500 shares of DFG common stock. The stock is being held in street name within the client's account. As for the location of the securities, the order ticket is marked: Short Long Street Short covered
Long
If a client wants to place an order that will be given priority over all other type orders, what type of order should be entered? Stop Order Market Order Limit Order Day Order
Market Order
When a firm's compensation is built into the net price of a trade, it's considered to be the: Markup or markdown Commission Sales charge Dealer concession
Markup or markdown
A trade which combines the executing firm's compensation on both a sale and a subsequent purchase is referred to as a(n): Proceeds transaction Principal transaction Agency transaction Covered transaction
Proceeds transaction
An investor who sells stock short should understand each of the following, EXCEPT: She wants the stock to decline in value She's potentially subject to unlimited loss She's borrowing stock She must execute the short sale in a cash account
She must execute the short sale in a cash account
A sell stop order is placed at 104. After the order is placed, the following trades occur: 106.50, 106.00, 105.25, 105.12, 104.25, 105.12. Which of the following statements are TRUE regarding the order? It's triggered at 104.25 It's triggered at 104.00 It's executed at 104.25 The order is not triggered
The order is not triggered
A buy stop limit order is placed at 45. After the order is placed, the following trades occur: 44.88, 44.88, 45.00, 45.12, 45.00. Regarding that trade, which of the following statements is TRUE? The order is triggered at 44.88 The order is triggered at 45.00 The order is executed at 44.88 The order is not triggered
The order is triggered at 45.00
