Ch 5-7

Question 1

A DMM (Designated Market Maker) may not accept a ____ order and a ____ order on his books.

Answer 1

Market

Not-held

Question 2

____ is a form of manipulation where offsetting trades are made to create the appearance of activity in stock. Prohibited under the Security Exchange Act of 1934.

Answer 2

Matching

Question 3

Rule ____ allows shelf registration, one registration covers all securities to be issued over next 3 years.

Answer 3

415

Question 4

Once a prospectus is filed it may not be ____ in any way.

Answer 4

Altered

Question 5

Restricted Stock: Rule 144: no need to file if under ____ shares or ______ dollars.

Answer 5

5,000

$50,000

Question 6

Market order that sells at or below/at or above a particular price is a ____ order.

Answer 6

Stop

Question 7

What is the cost basis?

Original 500 shares at $45 a share. %10 stock dividend

Answer 7

500x45=22,500
500x%10=50
so 22,500/550=40.91

Question 8

_____ ______ against the box is where client holding long position wants to sell the stock and not deliver his long position to close transaction.

Answer 8

Selling short

Question 9

Risk offerings saves underwriting costs.

Answer 9

Risk offerings

Question 10

Regulation S Securities:
____ days as debt sec.
____ yr(s) as equity sec.
before it can be sold in the US.

Answer 10

40

1

Question 11

_____ underwriters check accuracy of the prospectus.

Answer 11

Managing

Question 12

GTC (good til cancel) orders listed below market:
____- limit orders
____-stop orders
____-stop limit orders

Answer 12

Buy
Sell
Sell

Question 13

Third Market:

NYSE listed securities traded in the _____ market.

Answer 13

OTC (over the counter)