Chapter 17 Flashcards
A _____ order is placed above the current market price of a security.
sell limit
A _____ order is placed below the current market price of a security.
buy limit
A _____ is always placed below the current market price of a security and is used to limit a loss or protect a profit on a long stock position.
sell stop
A _____ is always placed above the current market price of a security and is used to limit a loss or protect a profit on a short sale.
buy stop
Sally converts her XYZ bonds and enters an order to sell XYZ stock. The sell order ticket would be marked as:
long
Painting the Tape
Traders effecting transaction back and forth to create a misleading appearance of activity.
Order that only permits discretion related to the time and/or price of execution is a:
not-held order
The decentralized, negotiated market is the:
over-the-counter market
The __________ is the primary system for accessing the quotes of Nasdaq market makers.
Nasdaq Market Center Execution System
A _____ order indicates quantity, security, and whether to buy or sell and is executed at the best price available.
market
A markup is generally based on the _____ market, but not the _____.
inside; dealer’s cost
The _____ regulates the Secondary Market.
Securities Exchange Act of 1934
The capacity in which the firm is acting in a transaction is found on the:
confirmation
The _____ provides quotes for the Third Market?
Consolidated Quotation System (CQS)
If a client says “buy 500 shares of XYZ this morning if it looks good”, this is a:
not-held order
Nasdaq will only show the inside market for a security in Level:
Level 1
Nasdaq market makers have the ability to change their quotes in Level:
Level 3
Capping
A manipulative activity that is designed to keep the price of a stock from rising.
Nasdaq market makers have current quotes for specific securities in Level:
Level 2
Pegging
A manipulative activity that is designed to keep the price of a stock from falling.
Order is entered to sell 100 ABC at 50 stop. Trades occur at 50.10…50.03…50…49.98…49.90. What is the execution price?
$49.98
A _____ order indicates quantity, security, and whether to buy or sell, but only at a particular price or better.
limit
Regulation SHO regulates:
short sales
Order is entered to buy 5,000 RST at $97 stop-limit. Trades occur at 96.99…97…97.02…97.05. Execution price is:
nothing because no trade occurring after the trigger (97) satisfied the buy limit at $97.