Trading Securities
Showing posts with label Trading Securities. Show all posts
Showing posts with label Trading Securities. Show all posts

Stock prices in the over-the-counter market are determined by:

Stock prices in the over-the-counter market are determined by:


A) the 5% markup policy.

B) open outcry for the securities at a central marketplace.

C) buyers and sellers bidding directly against each other in a double auction market.

D) negotiation between buyers and sellers.



Answer: D) negotiation between buyers and sellers.

A customer enters an order to purchase 1000 shares of XYZ common stock at the market when the quote is 18.22 bid, 18.30 ask. If the transaction is executed at the market and the broker charges a $.10 mark-up how will the price be reported to the consolidated tape system?

A customer enters an order to purchase 1000 shares of XYZ common stock at the market when the quote is 18.22 bid, 18.30 ask. If the transaction is executed at the market and the broker charges a $.10 mark-up how will the price be reported to the consolidated tape system?


A) 18.40

B) 18.32

C) 18.22

D) 18.30



Answer: D) 18.30

Trading is halted on a listed security on the NYSE because a large volume of orders created an order imbalance. A report of a transaction in the stock taking place on another exchange, will appear on the consolidated tape system (CTS):

Trading is halted on a listed security on the NYSE because a large volume of orders created an order imbalance. A report of a transaction in the stock taking place on another exchange, will appear on the consolidated tape system (CTS):


A) None of these.

B) as it occurs, despite the trading halt on the NYSE.

C) never, because trading is halted on the NYSE.

D) only after trading is resumed on the NYSE.



Answer: B) as it occurs, despite the trading halt on the NYSE.

The following appears on the consolidated tape: T SLD 45. What does the symbol SLD indicate?

The following appears on the consolidated tape: T SLD 45. What does the symbol SLD indicate?


A) This is the last transaction for American Telephone to be reported on this day.

B) Shares of American Telephone (T) traded cash settlement.

C) Shares of American Telephone (T) were sold previously but were not printed on the tape at the time of the trade and are now being printed out of sequence.

D) Shares of American Telephone (T) were sold short at $45.



Answer: C) Shares of American Telephone (T) were sold previously but were not printed on the tape at the time of the trade and are now being printed out of sequence.

Trade reports made to the Consolidated Tape:

Trade reports made to the Consolidated Tape:


include commissions.

do not include commissions.

include markups.

do not include markups.



A) II and IV.

B) I and III.

C) I and IV.

D) II and III.



Answer: A) II and IV.

Transactions involving which of the following would NOT be reported to the Consolidated Tape System (CTS) by an exchange or FINRA?

Transactions involving which of the following would NOT be reported to the Consolidated Tape System (CTS) by an exchange or FINRA?




A) Listed securities traded through an electronic communication network (ECN).

B) NYSE-listed rights and warrants.

C) Listed options.

D) NYSE-listed securities traded on the Chicago and Philadelphia exchanges.



Answer: C) Listed options.

Which of the following is applicable to the NASDAQ OMX PHLX?

Which of the following is applicable to the NASDAQ OMX PHLX?



I. Regional exchange operated by Nasdaq

II. Offers trading in equity securities and options contracts

III. Is a completely electronic exchange with no physical trading floor

IV. Regional exchange operated by FINRA for the execution of OTC stocks only



A) I and III

B) I and II

C) II and III

D) I and IV



Answer: B) I and II

One of your clients enters a sell stop order at $42.40, limit $42.15. Assume that the trades occur in the following sequence: 42.45, 42.40, 42.75, 42.27, and 41.91. At which of the following prices could this order be executed?

One of your clients enters a sell stop order at $42.40, limit $42.15. Assume that the trades occur in the following sequence: 42.45, 42.40, 42.75, 42.27, and 41.91. At which of the following prices could this order be executed?



$41.91.

$42.27.

$42.40.

$42.75.



A) I and II.

B) I and III.

C) III and IV.

D) II and IV.



Answer: D) II and IV.

A short sale of stock directed to an exchange must observe all of the following EXCEPT:

A short sale of stock directed to an exchange must observe all of the following EXCEPT:



A) the locate requirement for borrowed shares.

B) a margin requirement of 50%.

C) a minimum maintenance requirement of 30%.

D) the symbol "ss" on the consolidated tape.



Answer: D) the symbol "ss" on the consolidated tape.

Earlier in the day, you entered a customer order to buy 300 XYZ at 26.45 GTC. By late afternoon, you notice that XYZ is trading at your customer's limit price. At the close of trading, you contact the order desk and get a Nothing Done report because of

Earlier in the day, you entered a customer order to buy 300 XYZ at 26.45 GTC. By late afternoon, you notice that XYZ is trading at your customer's limit price. At the close of trading, you contact the order desk and get a Nothing Done report because of



A) the normal time delay between execution and execution reports

B) the order was canceled at the close of trading

C) the small size of the order

D) stock ahead



Answer: D) stock ahead

A customer, concerned about a possible pull-back in XYZ stock, instructs his broker, to "Sell my XYZ stock if it falls to 40, but I don't want less than 39.75 for my shares." The broker should enter a:

A customer, concerned about a possible pull-back in XYZ stock, instructs his broker, to "Sell my XYZ stock if it falls to 40, but I don't want less than 39.75 for my shares." The broker should enter a:




A) sell stop order.

B) sell stop limit order.

C) market order to sell.

D) sell limit order.



Answer: B) sell stop limit order.

A sell limit order is executed when a stock is:

A sell limit order is executed when a stock is:


rising.

falling.

at or below the limit price.

at or above the limit price.



A) II and IV.

B) I and IV.

C) I and III.

D) II and III.



Answer: B) I and IV.

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