Unit 16- Tupes Of Orders And Quotations

Question 1

Define: “Not held order”

Answer 1

A day order where the customer does not hold the broker liable for time and price.

Question 2

Order types not allowed on the NYSE?

Answer 2

• Stop
• Filling or kill
• Good till cancel

Note: only market orders are allowed

Question 3

Minimum maintenance in a short margin account?

Answer 3

30% of current market value

Question 4

What does Reg T apply to?

Answer 4

Both cash and margin accounts, for non-exempt securities.

Question 5

If cash dividends are deposited into a margin account, how long does the investor have to withdraw them?

Answer 5

30 days….after that fine they are added as a debit to the account, and increase the equity.

Question 6

Securities as they pertain to a margin account?

Answer 6

Can be purchased on margin + used as collateral

• exchange listed stocks
• bonds
• Warrants
• non-Nasdaq OTC issues approved by fed

Can not be purchased or used as collateral

• Options
• Rights
• non Nasdaq issues not approved by fed
• Insurance contracts

Can not be purchased, but can be used as collateral after 30 days

• mutual funds
• new issues

Question 7

When must the Reg T requirement be satisfied?

Answer 7

S + 2

Question 8

Market circuit breaker (Rule 80B) rules?

Answer 8

Level 1 = -7%

15 min pause, then trading continues

Level 2 = 13%

15 min pause, then trading continue

Level 3 = 20%

Trading stops for the remainder of the day.

Question 9

Define: margin call

Answer 9

The total purchase price of all securities (both cash and margin) in a margin account.