PT Ch18

PT Ch18 - Exam Name_ MULTIPLE CHOICE. Choose the one...

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Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Trading in stocks listed on the NYSE is conducted as a ________ at a designated physical location on the trading floor, called a ________, with brokers representing their customers' buy and sell orders. 1) A) decentralized discontinuous auction market; seat B) centralized continuous auction market; post C) centralized continuous auction market; seat D) decentralized discontinuous auction market; post 2) In a ________, sometimes called a period call, orders from customers are batched together for a simultaneous trade at a specific point in time. 2) A) put auction B) call auction C) regulated auction D) buyer's auction 3) Which of the below statements is FALSE? 3) A) The Trade - Through Rule provides price protection to top - of - book orders (best bids or best offers) placed on exchanges that are electronically accessible. B) The Order Protection Rule (Trade - Through Rule) requires that trades be executed at the best displayed prices provided by an electronic trading system and accessible under one second. C) ITS refers to the International Transaction System. D) Internalization refers to off - exchange ("upstairs") trades, mainly of retail trades. 4) The construct of the Nasdaq as a dealer system has made it ________ for ECNs and others to conduct the trades directly and report them to the exchange. 4) A) easy B) possible C) impossible D) difficult 5) The SuperDot system ________. 5) A) routes NYSE - listed stock orders electronically directly to a specialist on the exchange trading floor, rather than through a broker. B) is used for small market orders, limit orders, and basket (or portfolio) trades and program trades. C) can be used for under 100,000 shares with priority given to orders of 2,100 shares or less. D) All of these 6) The types of changes in the U.S. stock exchanges include ________. 6) A) the trading mechanisms of the exchanges and consolidation domestically. B) consolidation internationally and the trading mechanisms of the broker - dealers. C) consolidation among different types of assets, for example, securities options and futures . D) the market structures of the exchanges and decline of the off - exchange markets. 7) A fundamental difference between U.S. and international exchanges involves ________. 7) A) the nature of the exchanges' business organizations. B) their method of trading. C) their market structure. D) All of these 1
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8) In carrying out their duties, specialists ________. 8) A) are allowed to engage in transactions in securities in which they are registered unless such transactions are necessary to maintain a fair and orderly market. B) simply fill customer market orders or limit or stop orders by similar orders.
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PT Ch18 - Exam Name_ MULTIPLE CHOICE. Choose the one...

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