chapter 8 series 7

Question 1

otc market is what type of market

Answer 1

dealer

Question 2

specialist must refuse

Answer 2

not held orders

good for a month

Question 3

stock prices in otc market determined by

Answer 3

negotiation

Question 4

TRACE is for

Answer 4

corp, gov, and agency securities trading in otc market

Question 5

Markups are always based on the

Answer 5

inside offer which is the lowest ask price in a particular security

Question 6

markdowns based on

Answer 6

on the inside bid which is the highest bid price for a particular security.

Question 7

Trades in securities backed by the federal government are settled in

Answer 7

federal funds, not clearinghouse funds.

Question 8

otc and halting

Answer 8

The over-the-counter market is not bound by actions of the NYSE or other exchanges, and third-market trading may continue in the stock.

Question 9

Nasdaq is an equity market and includes

Answer 9

common stock, preferred stock, ADRs, and convertible bonds