Chapter 11

Question 1

Locked Market

Answer 1

bid = ask

Question 2

Crossed market

Answer 2

bid is above ask or ask is below bid

Question 3

Nasdaq unexcused withdrawal

Answer 3

suspended from quoting for 20 business days

Question 4

An NMS security with a $65 upper band will be in a straddle state if the NBO is $65.03 and NBB is 64.95

Answer 4

True

Question 5

A NMS security with a $110 lower band will be in a limit state if the NBO is $110 and the NBB is $109.65

Answer 5

True and if continues for 15 seconds, there will a 5 minute hold will take place if it doesnt get fixed

Question 6

Dual Agency Cross

Answer 6

internal trade that executed between two customers at the same firm

Question 7

riskless principial

Answer 7

firm purchases and resale to a client that is reported as one trade, no risk because trade request is already there

Question 8

Net basis

Answer 8

firm purchase and resale to a client thats reported as two trades

Question 9

Nasdaq LOC orders can be cancelled up to

Answer 9

3:55pm

Question 10

NYSE LOC cannot be cancelled for any reason after

Answer 10

3:58pm