Question 1

A NYSE floor member executing an order for a public customer asks the specialist in the stock to guarantee a price while giving the customer an opportunity to obtain a better price. This procedure is known as:

Options :

A : a stop order

B : stopping stock

C : floor protection

D : a special deal

Answer: B

Question 2

An option that permits the holder to exercise the contract only at expiration is referred to as:

Options :

A : European style

B : American style

C : Nordic style

D : Asian style

Answer: A

Question 3

Level III of NASDAQ provides which of the following?

Options :

A : representative quotations

B : firm quotation

C : subject markets

D : workout markets

Answer: B

Question 4

Which of the following sources provides news of prospective municipal securities sales to underwriters?

Options :

A : the Blue List

B : the daily Bond Buyer

C : the SEC News Digest

D : The Wall Street Journal

Answer: B

Question 5

A trust instrument drawn pursuant to the Trust Indenture Act of 1939 sets forth which of the following?

Options :

A : the rights of stockholders

B : the duties of the trustee

C : the obligations of the issuing corporation

D : both B and C

Answer: D

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