Series 24: Answers

Answers

1. 1. Answer: A. Rationale: Based on the NYSE Listed Company Manual, Section 102, a U.S. domestic issuer must have 400 round-lot holders and 1.1 million publicly held shares.
2. 2. Answer: B. Rationale: Suppose an investor wants to protect the profit that she has made off the ABC Company. The ABC Company is currently trading at $50, which is at a profit for the investor. The investor would like to hold onto the stock unless it starts to decline so the profit will not be lost. It places a sell stop order at $45, which means that if the ABC Company falls and begins to trade at $45 or lower, the investor’s stop order will automatically turn into a market order for a quick sale.
3. 3. Answer: D. Rationale: Market orders are the only ones of the four that get executed immediately. The others have stipulations that a