Trading & Market Making

Question 0

NYSE Regulation:

Though there is a minimum dollar amount per share to list on the NYSE, there is no ____________ requirement.

Answer 0

Earnings per share.

Question 1

NYSE Regulation:

In order to list in the NYSE there is a minimum share price requirement of…

Answer 1

$4/share

Question 2

NYSE Regulation:

If an issue or wants to voluntary delist from NYSE it needs approval from _______________, and it must file Form 25 with ______________.

Answer 2

Board of directors

NYSE & SEC

Question 3

NYSE Regulation, DMM:

The DMM must quote at _____________ a designated percentage of the day.

Answer 3

NBBO

Question 4

NYSE Regulation, DMM:

DMM cannot accept__________ orders.

Answer 4

Not held orders.

Question 5

NYSE Regulation, DMM:

The DMM firm is responsible which quote?

Answer 5

The opening quote.

Question 6

NYSE Regulation:

If a member has an order to buy and to sell at the same price (i.e. A crossed order) the member is obligated to…

Answer 6

Offering to the crowd at one sent above the current bid.

Question 7

NYSE Regulation: 80B

Level 1=

Level 2 =

Level 3=

Answer 7

Level 1= S&P 7% = 15 min halt

Level 2 = S&P 13% = 15 min halt

Level 3= S&P 20% = rest of the day

Question 8

The limit up limit down mechanism (LULD) is intended to prevent trades in securities from occurring outside of specific price bands. When do the price bands double in width?

Answer 8

On the open and the close.

Question 9

NYSE Regulations:

The NYSE defines a block trade as…

Answer 9

10,000 shares or $200,000 or more

Question 10

NYSE Regulations:

Market on the close orders (MOC) cannot be entered…

Answer 10

After 3:45 PM

Question 11

ECN: electronic communications network

What is it?

Answer 11

A registered alternative trading system (ATS) that provides extended trading hours.

Question 12

Securities eligible for NASDAQ listings are __________________ such as common stock, preferred stock, rights, warrants, limited partnerships, American depository receipts, and convertible bonds.

Answer 12

Equities and equity equivalent securities

Question 13

Limited partnerships that are negotiable and trade on exchanges or on the 0TC are…

Answer 13

Master limited partnerships (MLP).

MLP

Question 14

What are the stock categories in the NASDAQ stock market?

Answer 14

NASDAQ:
1. Global Market
A. Global Select = compete with NYSE
2. Capital Market

Question 15

To be listed on NASDAQ’s Global select market each equity must have…

Answer 15

1. Bid price of four dollars per share
2. At least three market makers
   Or
3. 1.1 million publicly held shares
   Or
4. Already listed on another marketplace for 90 consecutive trading days