Exercise

Choose the best answer.

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:

A. In the firm’s proprietary trading account

B. In a customer’s margin account

C. On the business day immediately preceding the reported trade date

D. The trade has not yet occurred, but it will trade as/of a future date to be determined

2. The difference between the bid and the ask prices in an OTC quotation is known as:

A. Load

B. Spread

C. Markup

D. Commission

3. In an OTC quotation the “bid” price refers to:

A. The lowest price a market maker will pay at any given time to purchase a specified number of shares of a stock.

B. The highest price a market maker will pay at any given time to sell a specified number of shares of a stock.

C. The highest price a market maker will pay at any given time to purchase a specified number of shares of a stock.

D. The lowest price a market