Terms 49-63

Question 1

Day order

Answer 1

Good only for the day trade.

Question 2

GTC Order

Answer 2

Good till cancelled order remains open until executed or cancelled by client

Question 3

Odd Lot

Answer 3

Trades of 1 to 99 shares handled by a specialist

Question 4

SLD

Answer 4

Stock reported out of sequence

Question 5

Block Trade

Answer 5

Trade over 10,000 shares

Question 6

OTC

Answer 6

Over the counter negotiated marketplace with no physical trading floor, all transactions are conducted via telephone and computer systems

Question 7

Market Maker

Answer 7

an OTC specialist

Question 8

NASDAQ

Answer 8

National Association of Securities Dealers Automated Quotation System

Question 9

Level 1

Answer 9

NASDAQ System- summary of stock’s price

Question 10

Level II (2)

Answer 10

NASDAQ System- list all market makers, their bids, and ask quotes.

Question 11

Level III (3)

Answer 11

NASDAQ System - allows market maker to change an existing bid or ask quote on stock.

Question 12

Arbitrage

Answer 12

Simultaneously buying and selling of a security to profit from an existing price discrepancy.

Question 13

SOES

Answer 13

Small Order Execution System- OTC Electronic system for executing orders.