Electronic Exchange : - NASDAQ is an electronic based exchange . It permits buyers and sellers to connect over a telecommunications network . NASDAQ does not have individual specialist but instead has market makers. While auction exchanges have only one specialist for each firm an electronic exchange can have dozens of market makers for a particular stock . -While NASDAQ does have listing and governance requirements that are similar to the NYSE they are less stringent . For example a firm must only maintain a market value of $1M whereas as the requirement on the NYSE is $50M . This makes NASDAQ a natural destination for smaller firms and the NYSE a choice destination for larger firms . 1. Which of the following is not a characteristic of the dealer market? a. All trades take place on the floor 2. Which of the following is not related to NASDAQ? a. Physical trading floor 3. Which of the following is not a listing requirement of NASDAQ? a. Must have a market value of $25 million 4. While the NYSE has one ______________ for each security NASDAQ may have many market makers a. Specialist 5. Level II will allow the trader to do all of the following except: a. Enter quotes directly into the system 6. Listing and maintenance requirements are set by exchanges in order to maintain their: a. Image in order to attract and retain firms 7. SuperDOT is an _____that is used on the NYSE to improve _____. a. order routing system; speed 8. If a stock price over a 30-day period falls below $1 on the NYSE it may be____________. a. delisted
9. What is a stated function of all exchanges? a. To provide liquidity to traders 10. Which of the following is not a responsibility of a market maker? a. The market maker must fulfill all orders from their personal inventory 11. Which of the following is not a characteristic of an auction market? a. Trading occurs directly between buyers and sellers 12. Which of the following is true of NASDAQ? a. NASDAQ houses primarily smaller cap stocks 13. Initial public offerings can take place _____. a. on syndicate trading desks 14. Which of the following is not a continued listing standard for NYSE? a. Maintain average market cap of $20 million or less for companies listed under Earnings standard 15. Which of the following is not a listing requirement of NYSE? a. All issuers must have a $5 stock price at time of listing 16. Which of the following is true about NYSE? a. NYSE utilizes floor traders 17. Which of the following is not a responsibility of a specialist? a. Specialists are required to either buy or sell at least 1,500 securities at the quoted bid and ask 18. Which of the following is associated with the routing system of the NYSE? a. The system auto executes orders as they come in 19. Which of the following is not related to NYSE? a. Electronic communication network (ECN) 20.Which of the following is not a characteristic of the dealer market?
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- Time Value Of Money, Corporation, Stock exchange, Types of business entity