Series 99: Exercise

Exercise

Answer the following questions.

1. 1. Laura Hobbins, a trader with XLH Group, is reviewing trades to prepare the best execution report when she observes a trade noted with as/of. This means the trade took place:
2. A. In the firm’s proprietary trading account
3. B. In a customer’s margin account
4. C. On the business day immediately preceding the reported trade date
5. D. The trade has not yet occurred, but it will trade as/of a future date to be determined
6. 2. The difference between the bid and the ask prices in an OTC quotation is known as:
7. A. Load
8. B. Spread
9. C. Markup
10. D. Commission
11. 3. In an OTC quotation the “bid” price is:
12. A. The term “bid” refers to the lowest price a market maker will pay at any given time to purchase a specified number of shares of a stock.
13. B. The term “bid” refers to the highest price a market maker will pay at any given time to sell a specified number of shares of a stock.
14. C. The term “bid” refers to the highest price a market maker will pay at any given time to purchase a specified number of shares of a stock.